December 5, 2014

Fannie Mae will be releasing DU Version 9.2 the weekend of December 13, 2014. New loans submitted to DU on or after December 13, 2014 will be subject to the new guidance.  Loans submitted to DU Version 9.1 and resubmitted after the weekend of December 13th will continue to be underwritten through DU Version 9.1.

Highlights of the DU 9.2 release are detailed below.

One Unit Primary Residence Cash-Out Transaction

  • The new maximum LTV for a 1-unit primary residence fixed rate cash-out transactions will be 80% (currently 85%). The maximum 75% LTV for an ARM transaction remains the same.

Multiple Financed Properties Message Update

The following message will be issued by DU on second home and investment when it appears the borrower has four or more financed properties.  As a reminder, REMN Wholesale limits the number of properties financed by a borrower to a maximum of four.

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Life Insurance Assets Message

When life insurance payout is used for the down payment or closing costs the borrower’s receipt of funds from the insurance company is required however if the funds are being used for reserves, the cash value must be verified and documented but the funds do not require liquidation and receipt by the borrower.

A new verification message will be issued by DU:

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Pending Sale Property Message

DU will issue a new message on primary residence transactions when a pending sale property is indicated on the 1003 as a reminder that if the property is not sold prior closing, the borrower must meet reserve requirements for pending sale properties.

Excessive Value Messages Modification

The excessive value messages will be updated with a reminder that when an appraisal is submitted to the Uniform Collateral Data Portal (UCDP), the messages from the UCDP and DU may vary since the messages issued by UCDP are based on an analysis of the data provided in the actual appraisal submitted.

No Payment Included Message Update

The message issued by DU when no payment is indicated on the online loan application for a mortgage, HELOC, installment loan, or an unknown liability type is being updated.

The message will be included in the first section of the DU Findings Report and will be updated to indicate the following:

The risk assessment of the loan casefile may not be accurate because the accounts did not have a minimum monthly payment and DU was unable to calculate the DTI.  The lender must ensure the DTI used in the risk assessment is accurate, and if a payment must be included in the DTI, the payment amount must be entered on the online loan application and the loan casefile resubmitted to DU.

Updated DU Findings Report

The Summary Section of the DU Findings Report will be updated as follows:

  • Borrower generation will be indicated, if applicable
  • “Total Expense Ratio” will change to “Debt-to-Income Ratio”
  • “Appraised Value” will be changed to “Actual/Estimated Appraised Value” to be clear that the value displayed is the value entered from the online loan application.

Changes highlighted in red below

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Mortgage Information and Qualifying Ratios Sections

These sections were also updated to indicate “Debt-to-Income Ratio” and “Actual/Estimated Appraised Value”

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With the release of DU 9.2 Fannie Mae is retiring DU Version 9.0 so casefiles will no longer be able to be resubmitted to DU Version 9.0.

The REMN Wholesale Agency Conforming matrix will be updated and posted on the REMN Wholesale website at www.remnwholesale.com

Read the DU Version 9.2 Release Notes in their entirety at Fannie Mae DU Version 9.2 Release Notes

If you have any questions, please contact your Account Executive.

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