Secondary lender Fannie Mae has updated its pricing on mortgages with loan-to-values in excess of 70 percent and on loans with subordinate financing.
The Washington, D.C.-based firm disclosed the updates Thursday in Announcement SEL-2010-17.
The pricing changes were the result of routine reviews that “ensure that Fannie Mae is positioned to provide a stable source of liquidity to its lender partners.”
Whole loans that are purchased or delivered into mortgage-backed securities after March 31, 2011, are impacted.
Most loans with LTVs at or above 70.01 percent will see loan-level price adjustments.
Mortgages with subordinate financing and LTVs at or below 65 percent will also now face LLPAs. In addition, loans with combined LTVs between 80.01 percent and 95 percent will be hit with the pricing adjustments.
“The CLTV ratio range for loans that have LTV ratios greater than 65 percent and less than or equal to 75 percent and CLTV ratios less than 95% has been adjusted,” the announcement stated. “In addition, the LLPAs have changed for the remaining LTV and CLTV ranges (with the exception of CLTV ratios above 95%).”
There were no LLPA changes for DU Refi Plus and Refi Plus mortgages.
