FNMA Agency Alt-A SISA and Secondary Marketing Guideline Changes
Fannie Mae Agency Alt-A SISA and ARMS
Effective for all immediately for all loans that are not currently locked Rate is revising our program guidelines due to changes in the Secondary Marketplace. All loans that are currently locked must close and fund by March 22, 2008 We have lowered the maximum LTV and are increasing the minimum FICO required in addition we will now be including a separate FICO requirement for Condo’s.
| Occupancy Type | LTV / CLT V / HCLTV | Minimum FICO | |||
|---|---|---|---|---|---|
| Purchase | Single Family | Condo | |||
| Primary | 1-unit | 90 / 90 / 90 | 740 | 770 | |
| 85 / 85 / 85 | 710 | 740 | |||
| 80 / 80 / 80 | 680 | 740 | |||
| Second Home | 1-unit | 90 / 90 / 90 | 740 | 770 | |
| 85 / 85 / 85 | 710 | 740 | |||
| 80 / 80 / 80 | 680 | 740 | |||
| Rate/Term Refinance | |||||
| Primary | 1-unit | 90 / 90 / 90 | 740 | 770 | |
| 85 / 85 / 85 | 710 | 740 | |||
| 80 / 80 / 80 | 680 | 740 | |||
| Second Home | 1-unit | 90 / 90 / 90 | 740 | 770 | |
| 85 / 85 / 85 | 710 | 740 | |||
| 80 / 80 / 80 | 680 | 740 | |||
| Cash-out Refinance | |||||
| Primary | 1-unit | 65 / 65 / 65 | 740 | 750 |
- Investor properties are no longer permitted.
- Debt Ratio may not exceed 45%, regardless of AUS finding.
- Subordinate financing must be provided by a financial institution and may not be a community second.
- 3/1 ARMs are not available for purchase or rate/term refinance transactions. (3/1 ARMs are available for cash-out refinance due to the lower allowable maximum LTV.)
- Borrower must sign a Borrower’s Certification and Authorization form (or similar document) at application.
Secondary Marketing Guideline Changes
As the volatility in the market continues we will be temporarily suspending our overnight protection program immediately. We will issue another bulletin at which time we will resume accepting locks via our overnight protection. In addition we will be changing the lock desk hours to 8 am CST to 6 pm CST on Monday.
Please feel free to contact your VP of Wholesale Lending or the Commitment Desk for further clarification if needed.
Thank you for your continued business!!