Fannie Mae: Updates to High LTV Refi Option and More
May 23, 2018
Source: Fannie Mae
High LTV refi option: Updated LTV floor, plus pricing and delivery info
Yesterday we announced an update regarding the high loan-to-value (LTV) refinance option, which will be available for refinance applications received on or after Nov. 1. As a reminder, this option is for Fannie Mae borrowers who are making their mortgage payments on time, but whose LTV ratios exceed our maximum allowed for standard limited cash-out refinance transactions. This update provides loan-level price adjustment information and changes the minimum LTV ratio to 97.01% for a one-unit, principal residence. For more information, including details about pricing and delivery requirements, read Lender Letter LL-2018-02.
Update to excess attorney foreclosure fees for Puerto Rico and the U.S. Virgin Islands
We will reimburse a one-time excess legal fee of $530 for additional legal work undertaken by servicers in Puerto Rico and the U.S. Virgin Islands whose loans were affected by Servicing Guide Section D1-3-01 and Lender Letter LL-2017-11 (as modified and extended by Lender Letter LL-2018-01). Law firms should request excess fee approval for each impacted mortgage loan by following the process in the Puerto Rico AAA Matrix or Virgin Islands AAA Matrix and use the Non-Standard Other Legal IPA Category.
Reminder: Notify document custodians for servicing transfers
After Fannie Mae has approved a servicer’s Form 629: Request for Approval of Servicing or Subservicing Transfer, the transferor servicer must notify the transferor document custodian of the servicing transfer with a final list of all transferred loans. Please note: Notification must occur even if the document custodian does not change. Review the list of active document custodians.
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