Well, this is probably the first time in … (that I can remember) that we have had absolutely NO rule changes or updates from FHA or VA (within the last 30 days).  However, Fannie, Freddie and USDA have become more prolific! 

Here are a couple of the top rule updates this month:   

Both Fannie & Freddie Announce Permanent Changes to Major Disaster Policies

While the primary reason for the rule updates was Hurricane Sandy, this is now a permanent policy for ALL future disasters—regardless of where you are located in the country! 

Here’s the part that you need to know about:  Even if the area is NOT declared an OFFICIAL disaster area, but the property is located in an area AROUND or NEAR where the disaster occurred, lenders and underwriters are now required to follow the additional inspection rules outlined by Fannie & Freddie.  The lender either has to warrant that the property is not damaged, or require another inspection or appraisal. Guess which one they’ll pick? 

Fannie is trying to get more DU Refi Plus loans to qualify . 

What has changed?  Well, if mortgage loans were covered by “lender-paid” or “pool” mortgage insurance, they did not show up in the DU Refi database and were NOT eligible.  Now they show up on the list.  So dig out some of your DU Refi Plus loans and check again.  You’ll also find an updated Mortgage Talking Point™ article, “Fannie Makes It Easier to Qualify for DU Refi & DU Refi Plus Loan” in this issue of www.MortgageCurrentcy.com

As part of the loans that now qualify for DU Refi Plus, Fannie updated HARP FAQ’s on October 11.

Three new questions and answers have been added—all having to do with lender-paid or investor-paid mortgage insurance.  They are very specific, and this will help you get more HARP loans in your pipeline. 

Let’s talk about quality control—which is the biggie this month.  Both Fannie and Freddie combined have issued 20 pages of updates.  While these updates are primarily for Fannie and Freddie direct seller/servicers, this is still something you need to read about. 

Why?  Because you-know-what runs downhill, and if a lender is required to re-purchase a loan due to quality control or fraud issues, you know who they are coming after!  The company and ultimately the loan originator.  Do you want to take the chance of not knowing what they are looking for when they audit a file?  Read the article and find out what they are talking about.

Once more with meaning–USDA  Clarifies Outbuilding and Acreage Requirements

Rural housing is “again” giving you a definition of the meaning of “outbuildings,” what is acceptable and what is not! This is probably the third or fourth time for this one.  More importantly, individual Rural Housing offices cannot make up their own rules—they must follow these.  So if you have a field office not following these definitions, you need to move your compliance up the chain of command. Mortgage Talking Points™ for your real estate agents: “USDA Outbuilding & Property Eligibility Rules”

You’ll find two Mortgage Talking Points™ articles for your real estate agents and clients.  Facebook posts for your social media marketing – just cut and paste and post one a week.  Tweets to keep your followers informed about the mortgage rules. 

Remember, getting a loan approved and closed these days, IS Rocket Science! 

Written and contributed by Karen Deis of Mortgagecurrentcy.com. Provided monthly by www.mortgagecurrentcy.com – interpreting the Rules and Regulation Changes for loan officers, processors, underwriters, and owners/managers. Mortgage Talking Points^TM, charts and checklists included.

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