Tag: Gift Funds

Freddie Mac Selling Guide Updates – Bulletin 2020-1 – Dated February 5, 2020

Written by: Lloyd Rutherford, Staff Writer Freddie Mac is back on track this year by issuing an update with a lot of reminders and credit policy changes.  Take a few minutes to read through this article for some important changes. Rule Synopsis: Freddie Mac is updating a variety of topics in their selling guide. This […]

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Freddie Mac – LPA Feedback Message Updates – Effective October 2019 – Dated September 17, 2019

Written by: Lloyd Rutherford, Staff Writer Using LPA correctly is essential to a successful approval with the right conditions. Stay up to date on the latest LPA feedback messaging along with an updated credit risk pricing adjustment matrix. Rule Synopsis: Freddie Mac issued notification that they are updating Feedback messages effective October 1, 2019 to […]

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Gift Funds as Reserves

Question: Does any program allow gift funds to be used for required reserves? Answers: Both Fannie Mae and Freddie Mac allow gift funds to be used as reserves. VA does not allow gift funds to be used as reserves. FHA will allow gift funds to be used as reserves but ONLY if the loan is […]

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FHA – Donor Gift Funds – Alternative to Bank Statement: Will FHA accept a statement from the donor’s bank letterhead with the account number, owner of account, and a statement that the balance is greater than “X” which is the amount of the gift? [Gift Funds and Gift of Equity Chart]

Answer: While FHA doesn’t provide detailed instructions on documentation from alternative accounts, the guideline does state: If the gift funds are not verified in the Borrower’s account, obtain the certified check or money order or cashier’s check or wire transfer or other official check evidencing payment to the Borrower or settlement agent, and the donor’s bank […]

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FHA Info # 19-09 – FHA Updates to Handbook 4000.1- March 27, 2019 – Effective March 27, 2019. [NEW – 4000.1 Handbook Old Guidance vs. New Guidance Chart]

Written By: Tracey Rumsey, Staff Writer With no notice and a 1030-page transmittal discussing the clarifications in the handbook, FHA blindsided the industry.  Our FHA expert painstakingly went through the entire transmittal to create this article and accompanying chart to help you get to the bottom line and understand what changed.  This is a must […]

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