HARP 2 Fannie Mae DU Updates

These updates are need in order for lenders to offer “outside” HARP 2 Refinances — which means lender refinancing loans of other lenders.  The updates were to be released in March of 2012.  We are checking the Fannie Mae and Freddie Mac websites daily for the release.  Watch here for future updates.

Note: Fannie Mae Released DU Release Notes 8.3 — dated March 9, but released in selling notes on March 20….here is the link to the release… 

https://www.efanniemae.com/sf/guides/duguides/pdf/current/rndodu83marupd.pdf

Note: Fannie Mae updated their FAQ on March 15.  This is the link to the new FAQ…

https://www.efanniemae.com/sf/mha/mharefi/pdf/refinancefaqs.pdf

Here is a paragraph out of the FAQ:

Do the standard risk-based LLPAs apply?
The standard risk-based loan-level price adjustments (LLPAs) do not apply. A matrix specifically for Refi Plus has been created and can be found on eFanniemae.com. Effective with January 1, 2012 MBS issuance and January 3, 2012 whole loan purchases, at the direction of FHFA, Fannie Mae is significantly reducing the maximum amount of LLPAs that apply to “HARP” mortgage loans – loans secured by principal residences with LTV ratios greater than 80%. The following changes apply:
The cap applicable to the sum of the LLPAs and the Adverse Market Delivery Charge (AMDC) on HARP mortgage loans with amortization terms less than or equal to 20 years is being reduced to 0.00%. As a result, all delivery fees are effectively eliminated for this category of loans.
The cap applicable to the sum of the LLPAs and the AMDC on HARP mortgage loans with amortization terms greater than 20 years is being reduced to 0.75%.
 LTV ratio ranges in the tables have been updated to reflect the higher LTV ratios that will now be permitted.
For DU Refi Plus and Refi Plus mortgage loans that are not defined as HARP loans, the LLPAs, AMDC, and the current cap of 2.00% will remain in effect. Refer to the updated Refi Plus Pricing Matrix on eFannieMae.com for all complete information.

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