Bulletin BRO 09-179 Important Reminder Regarding the DU Refi by elemnopey

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									Wholesale Bulletin
 Information for Wholesale Customers of SunTrust Mortgage, Inc.


   June 19, 2009
   BRO 09-179
   IMPORTANT REMINDER REGARDING THE DU REFI PLUS™ LOAN PROGRAM - Information
   Regarding DU 7.1 Updates
   As previously published in Wholesale Bulletin BRO 09-172, during the weekend of June 27, 2009,
   Fannie Mae will update Desktop Underwriter (DU) Version 7.1 to implement additional
   enhancements to the DU Refi Plus loan program. Updates will include modifications to the
   maximum allowable amount of cash back to the borrower, new DU Refi Plus eligibility messaging,
   implementation of the ability to underwrite loan casefiles as a standard limited cash-out
   (rate/term) refinance, and additional miscellaneous updates. Unless otherwise specified below,
   the updates included in this release will apply to DU Version 7.1 loan casefiles submitted or
   resubmitted to DU on or after the weekend of June 27, 2009.
   A summary of the DU 7.1 updates as well as the effective dates are outlined in the table below:
    Effective Date                                                  Topic
    July 1, 2009     Modifications to the Maximum Allowable Amount of Cash Back
                     • Effective with loan applications (i.e., 1003 date) on or after July 1, 2009, borrower(s) may NOT
                        receive cash back on any DU Refi Plus transaction. Any excess cash, up to a maximum of $250,
                        representing the difference between the estimated and the actual payoff of the original loan plus
                        closing costs and prepaid fees must be applied as a principal curtailment to the new first
                        mortgage.

                         Note: If there is ever excess cash greater than $250, then the loan cannot close as is. A new
                         loan amount must be recalculated, the loan must be re-approved, and new documents must be
                         drawn.

                     •   Click here for procedures for applying a principal curtailment to the new first mortgage at
                         closing.

                     Notes:
                     • If the “Details of Transaction” screen in DU reflects that the borrower is receiving more than
                        $250.00 cash back, the loan casefile will not be underwritten as a DU Refi Plus transaction.
                     • Since this requirement applies to loan applications dated on or after July 1, 2009, this
                        modification will only apply to new loan casefiles submitted to DU on or after July 1, 2009.

    July 1, 2009     •   The ineligibility of temporary interest rate buydowns will be reflected in DU effective with new
                         loan casefiles submitted to DU on or after July 1, 2009.
    June 27, 2009    New DU Refi Plus Eligibility Messaging
                     • New messages will be issued to inform users why a loan casefile was not underwritten as a DU
                        Refi Plus loan. These new messages appear in the “Risk/Eligibility” section of the DU
                        Underwriting Findings Report.


                         SunTrust Mortgage, Inc. 1001 Semmes Avenue, Richmond, VA 23224

                                                       Page 1 of 2
 Effective Date                                                  Topic
 June 27, 2009    Implementation of the Ability to Underwrite DU Refi Plus Loan Casefiles as a Standard Limited
                  Cash-Out (Rate/Term) Refinance
                  • With the 7.1 update, Fannie Mae is implementing an option to allow DU to underwrite a DU Refi
                     Plus loan casefile as a standard limited cash-out (rate/term) refinance. Please note that due to
                     SunTrust system impacts, the ability to utilize this DU option will not be available until a later
                     date. SunTrust will communicate the ability to utilize this DU option in the near future. Until
                     that time, please continue to utilize the guidance provided in Wholesale Bulletin BRO 09-118
                     regarding the processing of limited cash-out (rate/term) refinance transactions receiving DU Refi
                     Plus eligibility.
 June 27, 2009    •   Updates will be made to the collateral risk assessment process which is used to issue the
                      message indicating the minimum level of fieldwork required if the lender does not exercise the
                      DU Refi Plus PFW option. With this update, certain casefiles resubmitted to DU on or after
                      the weekend of June 27, 2009, may receive a reduced minimum level of fieldwork
                      recommendation from the previous submission.

                      Example: A loan is submitted to DU prior to June 27, 2009. The “Property and Appraisal
                      Information” section of the DU Findings indicates the eligibility of a PFW or if not exercised a
                      FORM 1004 is required. The same loan casefile is resubmitted to DU on or after June 27, 2009;
                      however, the new message now indicates PFW eligibility or if not exercised a 2075 is required.

                      Note: As a reminder, current SunTrust DU Refi Plus PFW guidelines continue to apply for loans
                      originated with an appraisal.
 June 27, 2009    •   The process used to validate the subject property address against existing Fannie Mae loans
                      eligible to be refinanced as DU Refi Plus transactions is being modified. This change to the
                      validation process will increase the number of loan casefiles that can be matched to an existing
                      Fannie Mae loan.
 June 27, 2009    •   The following message will be moved from the “Verification” section of the DU Underwriting
                      Findings Report to the “Risk/Eligibility” section.

                      This loan casefile was underwritten according to the DU Refi Plus expanded eligibility guidelines
                      offered on certain limited cash-out refinance loan casefiles where the borrower's existing loan is
                      identified by DU as a Fannie Mae loan. This loan casefile must be delivered with Special Feature Code
                      147.


Revised Product Materials
The DU Refi Plus product description as well as the DU Refi Plus™ Loan Program Eligibility Checklist
for Conforming Loan Limits and For Current SunTrust Customer(s) (STM to STM) (BRO 0161) will be
updated on June 26, 2009. Until that time, please maintain a copy of this bulletin for your
immediate reference.

Should you have any questions, please contact your account executive, regional office, or the
Resource Center.




                        SunTrust Mortgage, Inc. 1001 Semmes Avenue, Richmond, VA 23224

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