Issue: Q&A - July 25, 2018

Fannie Mae – Current Principal Residence Pending Sale: Can you close on a new property before your present property closes?

Answer: Yes, provided you meet the following criteria. This guideline/policy applies to any/all loan types Fannie Mae offers. Remember that you need an executed purchase contract and all financing contingencies removed/cleared. Reference: B3-6-06, Qualifying Impact of Other Real Estate Owned (06/30/2015) Current Principal Residence Pending Sale If the borrower’s current principal residence is pending sale, but […]

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Fannie Mae-Car Lease Obligation: If a client chooses to pay off a car lease, do we need to count the debt in the ratios?

Answer: If you want to avoid adding the debt into ratios, your client would have to buy the car outright. They can have no financing whatsoever, not a lease, and not a loan to buy out the lease; nothing. Here is what Fannie says about Lease Payments (no difference in requirements for Freddie Mac, by the […]

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Compliance – RESPA-Co-Marketing: What does RESPA say about co-marketing with a referral source?

Answer: If you are going to participate in co-marketing with a referral source, the first thing we recommend is to check with your company policy as it is likely they have already vetted this practice with their legal counsel. However, if your company has no policy on this subject, here is what the law firm […]

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VA – Offer Letter: What is the VA Policy for using income to qualify when a person does not start by the closing date?

Answer: VA does not have specific guidance regarding future income/job offers except in the case of an active duty service member who is soon leaving active duty and has a civilian job offer. The documentation requirement that you see on your AUS findings is for VA’s alternative documentation option.  This requirement is for a paystub covering […]

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VA – New Guidelines-Refinance Seasoning: Under the VA new guidelines, does the seasoning requirement of 210 days apply?

Answer: Under the new VA refinance guidelines, you can do a cash-out refinance in certain cases with no seasoning requirements and have it guaranteed by VA. HOWEVER, Ginnie Mae issued a bulletin (attached below) that says because of the Consumer Protection Act signed into law on May 24, 2018, the seasoning guideline applies and they […]

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