Issue: Q&A - May 25, 2018

Fannie Mae – Repossessed Car – Our client has a repossessed car from 5 years ago. Will Fannie or Freddie require this to be paid off?

Answer: This really depends on how DU or LPA considers this.  We suggest that if you have already run DU or LPA, then it is likely the account has already been reviewed and an appropriate feedback message would need to be followed.  If your applicant is disputing the tradeline, you may also need to follow […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Fannie Mae – Continuation of Income – What types of income require documenting a 3-yr. continuance and which ones do not? [NEW MTP – Documenting Continuance of Income]

Answer: Fannie Mae makes it easy to determine which types of income require documenting 3 years of continuance vs. income that does not require this documentation. Reference: B3-3.1-01, General Income Information (7/25/2017) Continuity of Income A key driver of successful homeownership is confidence that all income used in qualifying the borrower will continue to be […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Fannie, Freddie, FHA and USDA – Installment Debt Under 10 Months – Will any of the agencies not count debt that is paid down to 10 months or less?

FHA Answer: Unfortunately, FHA does not allow for debt to be paid down to the 10-month payment level in order to exclude it from the DTI calculation.  See the full guideline below. Reference: 4000.1, II, A, 4, b, iv (A) General Liabilities and Debts (TOTAL)The Mortgagee must determine the Borrower’s monthly liabilities by reviewing all debts […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Fannie, Freddie & FHA – Digital Wallet Apps – Can we use Venmo® or Zelle® deposits as an acceptable source of fund?

Answer: Fannie & Freddie Say: This is a good question, especially as we watch payment systems evolve.  That said, this is a “no go” for use as available assets.  The primary challenge with these types of accounts not being eligible is defined in the following requirements, many of which cannot be met with a Digital […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Scroll to Top