Clarification of Recent
U.S. Bank Bulletins

Minnesota Housing Clarification of U.S. Bank Bulletins
U.S. Bank Home Mortgage released two bulletins the week of July 18, Bulletin 2016-04 and Bulletin 2016-05, announcing revisions to U.S. Bank guidelines for conventional loans with an LTV between 95.01% and 97% and manually underwritten loans. 
Conventional Loans with LTV Between 95.01% and 97%
U.S. Bank’s Bulletin 2016-04 announces changes to conventional loans with an LTV between 95.01% and 97%. These changes do not affect Minnesota Housing loans.   
  • Minnesota Housing lenders continue to have delegated underwriting authority for conventional loans with an LTV between 95.01% and 97%. 
  • Condos are an eligible property type. 
  • The maximum DTI for HFA Preferred™ is 50%. All other Minnesota Housing conventional loan products have a maximum allowable DTI of 45%.  
Lenders should continue to follow underlying product guidelines and the guidelines in Minnesota Housing’s program manuals, program descriptions and product descriptions.
Manually Underwritten Loans
U.S. Bank’s Bulletin 2016-05 announces that all manually underwritten loans have the following requirements:
  • The maximum allowable DTI is 36%.  
  • Minimum reserves of two months PITIA after closing, or greater if product guidelines require more.  
These changes apply to Minnesota Housing loans. U.S. Bank continues to disallow manually underwritten conventional loans with LTVs between 95.01% and 97%.
Please see updated conventional product descriptions on our website:
Need a Minnesota Housing Refresher?

Training is not just for loan officers! Our Webinars are just as important for underwriters, processors, closers and post-closers. Visit the training page for more details and register for these upcoming Webinars:

You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 7:30 a.m. and 5:00 p.m. on business days.
400 Sibley Street, Suite 300 | Saint Paul, MN 55101 US
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