Issue: Rules – August 10, 2020

Minimum Distance Requirements Between Primary Home & Second Home

Question: Is there a minimum distance required from a second home to the primary residence? MTP™ – Second Home or Investment Property? Answer: No. Lenders may impose them, but Fannie does not. Here are the requirements for a 2nd home from their selling guide.Second Home Properties Must be occupied by the borrower for some portion […]

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What Temporary Guidance Has Been Issued by FHA for Self-Employed Borrower Income?

Question: I am being challenged with a self-employed file and documenting it correctly.  What is needed in today’s COVID world? Answer: The requirements for the YTD P & L and the 2 months of bank statements are standard underwriting requirements. The only new COVID-related requirements for self-employed borrowers were recently issued in Mortgagee Letter 2020-23 […]

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Home Awarded to Ex-Spouse Goes into Foreclosure After the Divorce

Question: My client’s ex-spouse was awarded the home in the divorce agreement.  After the divorce, late payments and ultimately a foreclosure occurred.  Will this affect my client’s ability to get an FHA loan? MC Chart- Divorced Borrowers – All Agencies Answer: Foreclosure and Deed-in-Lieu of Foreclosure (Manual) A borrower is generally not eligible for a […]

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What Was Added? What Was Changed on Mortgage Currentcy This Month?

In each Rules Issue, we post, “What was Added and What Was Changed!”  This helps our subscribers stay up to date on all of the additions to the site as well as changes to our charts, checklist, and MTPs that are changed each month, due to guideline updates. The COVID-19 Updates keep coming, but there […]

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