The Carrington Mortgage Services, LLC (CMS) Fannie Mae Underwriting Guidelines are being updated to include changes announced in the DU/Desktop Originator® Version 10.3 Release Notes, including:
Please note: these changes apply to new loans submitted to Desktop Underwriter on or after December 8, 2018.
Fannie Mae will make adjustments to the DU credit risk assessment to account for 2018 market conditions (rising interest rates, waning refinances and High LTV lending). Changes made to the DU risk factors are:
Cash out refinance transactions for borrowers with a DTI ratio exceeding 45% must have at least six months of reserves. If there are not at least six months of reserves, the loan with receive an Ineligible recommendation.
Fannie Mae will make adjustments to the DU credit risk assessment to account for 2018 market conditions (rising interest rates, waning refinances and High LTV lending). Changes made to the DU risk factors are:
If a loan receives an appraisal waiver offer prior to the disaster and upon resubmission to DU continues to meet all other appraisal waiver eligibility requirements, DU will continue to offer the appraisal waiver. A new message will be issued directing the lender to take prudent and reasonable actions to determine if the property condition has been materially impacted; and that the loan must comply with all property eligibility requirements that pertain to properties affected by a disaster.
Appraisal waivers will no longer be offered on refinance transaction when the estimated value of the property (as provided to DU) is $1,000,000 or more.
Please contact CorrespondentRM@carringtonms.com with any questions.
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