The changes in this release will apply to DU Version 11.0 loan casefiles submitted or resubmitted to DU on or after the weekend of June 5, 2021.
Lender Letter 2021-10 announced a new refinance option for Fannie Mae borrowers who are making their mortgage payments on time, and whose income is at or below 80% of the applicable area median income (AMI) for the subject property’s location. Details on how DU will identify and underwrite RefiNow loans are specified below.
Address and Borrower Matching to the Existing Loan
When a one-unit, principal residence, limited cash-out refinance loan is underwritten in DU and the total income on the loan casefile is at or below 80% of the AMI, DU will determine if Fannie Mae owns the loan on the property, and if that loan is eligible to be refinanced using the RefiNow refinance option.