twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

Fannie Updates M.I., Credit Score Requirements

Desktop Underwriter 8.0 to be implemented in December

Sept. 23, 2009

By staff

Fannie Mae unveiled a host of changes that impact minimum credit scores and mortgage insurance. The updates are being made in conjunction with the implementation of the latest version of Desktop Underwriter.

Desktop Underwriter Version 8.0 will be implemented the weekend of Dec. 12 by the Washington, D.C.-based company, according to selling guide Announcement 09-29 issued yesterday. (read 8.0 notes and frequently asked questions)

Fannie said it is raising the minimum credit score for all DU underwritten loans to 620, while manually underwritten programs will be the higher of 620 or 40 points less than the program requires under DU. Loans that vary from the master agreement and mortgages insured or guaranteed by the government will also require a minimum score of 620.

"Exceptions to the minimum credit score requirement are limited to mortgage loans that are
manually underwritten with nontraditional credit and those originated in accordance with Refi Plus or DU Refi Plus," the announcement stated.

The update, which is effective on applications taken on or after Nov. 1, is one of several in a move to align manual underwriting guidelines with DU Version 8.0. Delivery or purchase under DU 7.0 and 7.1 must occur by April 30, 2010.

Fannie said it is eliminating its reduced and lower-cost mortgage insurance options as well as its lower-cost option for flexible mortgages. In addition, higher coverage requirements for manufactured homes will no longer apply.

But lower mortgage insurance coverage options are being broadly expanded from just 20-year fixed-rate mortgages and MyCommunityMortgage loans to other transactions. The option is available for both manually underwritten loans and DU casefiles Version 7.0, 7.1 and 8.0 loans. (view page 4 and 5 of full table of new coverage requirements)

Fannie noted that net loan-to-value is used determine the level of mortgage insurance coverage, while gross LTVs -- which include financed premiums -- is used in the determination of Fannie eligibility and loan-level price adjustments.

Flexible mortgages with the lower-cost mortgage insurance option on DU Version 7.0 and 7.1 must be delivered or purchased by Dec. 31, the announcement indicated.

The secondary lender is eliminating the restriction on split premium financing, which results in a portion of the mortgage insurance premium being financed in the loan and the rest paid monthly. Split or single-premium financed mortgage insurance will now
be permitted for any eligible mortgage insurance coverage level.

In addition, financed mortgage insurance will be permitted on DU loans with expanded approval but won't be allowed on cashout transactions, investment properties or two- to four-unit properties.

The mortgage insurance changes will be implemented with DU 8.0 the weekend of Dec. 12.

Delivery of loans originated under the updated guidelines can begin on Jan. 1, 2010.

Another change was the elimination of the bi-weekly loan. Fannie cited lack of demand and increased operational costs as the reason the program was retired. The bi-weekly program will also be eliminated on applications taken the weekend of Dec. 12, while delivery must or purchase must occur by April 30.

read full Announcement 09-29

read Desktop Originator/Desktop Underwriter 8.0 release notes

Fannie Mae profile

next story

back to current headlines

Mortgage Insurance News | M.I. Directory | M.I. Statistics
News about mortgage insurance issuance, defaults and litigation
Credit News | Bankruptcy Statistics | Credit Score Statistics
Credit scores, bureaus & technology. Bankruptcty activity. Credit-related lawsuits, announcements and coverage of F a i r Isaac, E q u i f a x, E x p e r i a n, F I C O, V a n t a g e Score & T r a n s Union.

Mortgage Technology news
Technology news for originators, executives and servicers. Coverage of LOS systems, loan product and p r i c i n g engines and other technology offered to the mortgage industry.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders