Want some defined info on DU REFI PLUS and help your customers?

mtgfixit · Joined: 13 Apr 2009 Posts: 73 27.91 Dollars($)

Features of the FNMA DU Refi Plus Program

• Maximum LTV as accepted by DU, up to 95%.
• Maximum CLTV as accepted by DU All existing subordinate financing must be re-subordinated. New subordinate financing is not permitted.
• Minimum credit score requirement is 620 on standard conforming limits; 680 on FNMA High Balance. A credit report must still be submitted. Minimum 48 months since a Bankruptcy; 84 months since either a foreclosure or multiple bankruptcy
• DU approve/eligible recommendations (without EA findings) will be accepted
• Primary, second home and investment properties are eligible.
• Eligible properties are 1-4 units, FNMA eligible condos, and PUDs (2-4s are not eligible on FNMA High Balance)
• Qualifying ratios are determined by DU.
• The borrower(s) on the existing loan must be identical to the borrower(s) on the new loan. A new borrower may be added to the new loan, as long as the existing borrower(s) is retained.
• Mortgage insurance is not required if the existing loan does not require MI. Loans currently with MI are not eligible for this product through HSOA.
• Loan amount may exceed existing loan unpaid principal balance only for payment of closing costs, prepaid items and lender fees.
• Borrower may receive up to the lesser of 2% or $2,000 at closing.
• The new refinance loan must result in a tangible net benefit to the borrower in either a) a reduction in the interest rate; b) a reduction in the amortization term; c) the replacement of an ARM or a Balloon/ Reset Mortgage with a fixed-rate loan or d) lower monthly payment that recoups costs within 60 months.
• Documentation requirements are per DU findings
• Property Inspection Waivers (PIW) accepted where allowed by DU, provided:
• Borrower certifies the home has not been listed for sale in the past 6 months and is not currently for sale
• Property county was not declared to be in a FEMA declared disaster county since last first lien lending transaction
• Last first lien lending transaction was not a purchase as an REO sale.

If the existing loan has mortgage insurance, the only lender able to process that loan as a DU Refi Plus loan is the current lender servicing that loan. Direct the borrower or submit the loan to them if a DU Refi Plus transaction is the best solution for your consumer.

eric1 · Posted: Wed Apr 15, 2009 6:58 pm Post subject:

Karla

The initial details that I received on the program indicated that the max LTV is 105% and the credit score requirements would be lower than 620.

Something else to mention is the borrowers' current loan must be with FNMA to qualify.

mtgfixit · Joined: 13 Apr 2009 Posts: 73 27.91 Dollars($)

Eric,

Thank you for the additional info and the websites!

eric1 · Posted: Sat Apr 18, 2009 7:50 pm Post subject:

Some additional info...

Many banks are electing to impose additional restrictions on this program. For example, although FNMA allows for up to 105% loan to value, I know of a couple of banks that are not permitting anything greater than 80% loan to value. this defeats the general purpose of the program.

All times are GMT - 7 Hours

Page 1 of 1