Announcement 20-0008: FNMA HomeReady Homebuyer Education Update

February 6, 2020

Overview

Fannie Mae is eliminating lender-provided homebuyer education as an option for meeting the HomeReady Homebuyer Education requirement.

Effective for loans closed March 1, 2020 and later, any Fannie Mae Homebuyer Education requirement must be satisfied using the Framework course or HUD-approved counseling, as explained below.  Fannie Mae has removed the $75 fee previously charged for the Framework course.

Required Homebuyer Education

For HomeReady purchase loans, if all occupying borrowers are first-time homebuyers, homeownership education is required for at least one borrower, regardless of LTV.

Borrowers may:

  • Complete the Framework homeownership education course (at no cost) prior to closing at https://educate.frameworkhomeownership.org/; or
  • Receive housing advising from a HUD-approved nonprofit housing counseling agency, as evidenced by a signed Certificate of Completion of Pre-purchase Housing Counseling (Form 1017) prior to the borrower signing a purchase contract.

Framework’s online education may not be appropriate for all potential home buyers. The presence of a disability, lack of Internet access, and other issues may indicate that a consumer is better served through other education modes (e.g., in-person classroom education, telephone conference call, etc.). In these situations, consumers should be directed to Framework’s toll-free customer service line 1-855-659-2267, from which they can be directed to a HUD-approved counseling agency that can meet their needs. The counseling agency that handles the referral must provide a certificate of completion, and the Lender must retain a copy of the certificate in the loan file.

Contacts

Please contact CorrespondentRM@carringtonms.com with any questions.

Carrington thanks you for your business.

Government Agency Approvals

FHA Non-Supervised Mortgagee Approval #:
24751-0000-5
VA Automatic Lender Approval #:
902324-00-00

Mortgagee/Loss Payee Clause

Carrington Mortgage Services LLC
ISAOA/ATIMA
P.O. Box 692408
San Antonio, TX 78269-2408

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This information is provided for your convenience and Carrington Mortgage Services, LLC makes no warranties concerning the accuracy or completeness of any of the information. This is not financial or legal advice and should not be taken as such. This information is for mortgage professionals only and is not intended for distribution to consumers.
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Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00

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