FHA – Listing Agent Closing Cost Assistance: Can a listing agent contribute to the buyer’s closing costs if we stay within the IPC [Interested Party Contribution] guidelines? [Interested Party Contribution Chart]

Answer: Yes.  The selling agent can contribute to the buyer’s closing costs as long as the contribution complies with the Interested Party Contributions guideline shown below. Reference: 4000.1 II. A. 4. d. iii (G) Interested Party Contributions (TOTAL) (1) Definition: Interested Parties refer to sellers, real estate agents, builders, developers or other parties with an interest in [...]

2019-04-19T16:41:18-05:00April 24th, 2019|

Compliance – Fannie Mae Lender Incentive Limits for Borrowers: Many of our competitors are offering incentives like gift cards with a value over the $500 limit for conventional lender incentives. Did this change?

Answer: First things first:  You are not missing an update.  In today’s ultra-competitive market, it is very likely that lenders of all shapes and sizes are ‘pushing the envelope’.  Sometimes they are playing by all the rules, sometimes they are not.  If a lender chooses to give more than what the selling guide allows for, [...]

2019-03-25T08:57:09-05:00March 25th, 2019|

Fannie Mae – Real Estate Agent Borrower – Commission Usage: When a real estate agent is also the buyer, can their commission earned on that sale go towards their down payment and closing costs?

Answer: Fannie Mae restricts the use of commission for down payment but could use the commission for closing costs. And yes, the agent / borrower should be able to show sufficient funds to close without counting the commission. That use of the commission for closing costs would count towards the limit on interested-party contributions.  The [...]

2019-02-25T10:52:59-05:00February 25th, 2019|

Fannie Mae & FHA – VA – Realtor Credit: Does a $500 credit from a Realtor commission to the borrower affect the LTV as an IPC (Interested Party Contribution)? [MC Chart-Interested Party Contributions-All Agencies]

Answer-Fannie Mae: For Fannie Mae, an IPC does not need to be subtracted from the purchase price UNLESS you exceed the cap on IPC’s (grid below) for occupancy type and LTV. Reference-Fannie Mae Financing Concessions Financing concessions that are paid on the borrower’s behalf are subject to Fannie Mae’s IPC limits. Financing concessions are: financial [...]

2018-09-25T19:02:57-05:00June 24th, 2018|

Fannie Mae – Desktop Underwriter/Desktop Originator Release Notes DU Version 10.2 June Update – Dated April 24, 2018 – Effective June 23, 2018.

By: Lloyd Rutherford, Staff Writer Fannie Mae is updating DU to Version 10.2 next month.  With this update, you will need to understand what is changing and how this will affect what you input into the system so that you get the results you are hoping for.  Be sure to read through this update for [...]

2018-05-29T16:30:34-05:00May 9th, 2018|