Critical Lender Update: Conventional Product Changes
Please join us for a Critical Lender Update on Wednesday, October 16 from 9-10 a.m. to review the changes below. We have identified many loans in the pipeline that have been locked with incorrect interest rates and we want to help you avoid making the same mistake. Make sure your borrowers are receiving the correct interest rate and MI coverage! Click here to register.
Fannie Mae recently announced changes to their conventional loan products that affect our Start Up and Step Up conventional loans. The changes affect Fannie Mae loans with initial DU® run dates on or after September 5 and include the following:
- Pricing changes effective September 5, 2019:
- Different pricing for Fannie Mae borrowers at or below 80% Area Median Income (AMI) and Fannie Mae borrowers over 80% AMI.
- Changes to mortgage insurance rates for Fannie Mae borrowers above 80% AMI.
- Fannie Mae borrowers with initial DU® run dates on or after September 5 will no longer be eligible for charter-rate mortgage insurance.
- Product/options availability
- Fannie Mae HFA Preferred Risk Sharing™ loans will no longer be available to borrowers over 80% AMI (for borrowers with initial DU® run dates on or after September 5).
- Upfront Paid Mortgage Insurance (UPMI) will no longer be available to Fannie Mae borrowers above 80% AMI (effective for new locks in the Minnesota Housing loan commitment system on or after September 5).
