SS Memo 09-09

Date: November 30, 2009

SELLING GUIDE REVISIONS: CONTACT UNDERWRITING

After thoughtful consideration to the concerns and suggestions of our lending partners, AHFC announces the following changes to the Selling Guide.

Automated Underwriting
(Section 4000.03)

Effective immediately, all loans submitted to AHFC for commitment must be submitted to an automated underwriting system (AUS) as outlined below. The lender must use the most current version of the AUS. It is the lender’s responsibility to ensure the data entered into the automated system is accurate and all supporting documentation is maintained in their loan file. The credit score, AUS identifier number and total debt ratios will be collected from the AUS feedback/findings submitted with the UND-3. Effective immediately, please include a copy of the page of the feedback certificate/findings report that contains the results, credit score, and loan summary information for the loan with all UND-3 submissions.

FNMA Desktop Underwriter (DU)

When the DU Findings Report reflects:

  • Approve/Eligible – The loan is acceptable to AHFC provided all the conditions of the findings report have been satisfied and the loan file has been documented according to the DU findings report. Lenders must meet all requirements outlined in the Verification Messages/Approval Conditions.
  • Approve/Ineligible – The loan is acceptable to AHFC provided the lender determines the criteria that makes the loan ineligible for FNMA does not also apply to AHFC.
  • All other findings – If the lender determines the mortgage is acceptable to AHFC, the loan must be manually underwritten and fully documented according to the criteria as set forth in Part IV of the AHFC Selling Guide. AHFC Form UND-1, Comprehensive Risk Assessment for Manual Underwriting must be completed for all manually underwritten loans and retained in the lender’s file.

For loans approved using DU, the Lender must comply with all the requirements outlined in the most current FNMA Underwriter User’s Guide and the Guide to Underwriting with Desktop Underwriter. The applicable warranties and waivers outlined in these guides will also apply to AHFC loans.

FHLMC Loan Prospector (LP)

When the LP Feedback Certificate reflects:

  • Accept/Eligible - The loan is acceptable to AHFC provided all the conditions of the findings report have been satisfied and the loan file has been documented according to the LP Feedback Certificate. Lenders must meet all requirements outlined in the Documentation Guidelines/Loan Processing Remarks of the FHLMC Feedback Certificate.
  • Accept/Ineligible - The loan is acceptable to AHFC provided the lender determines the criteria that makes the loan ineligible for FHLMC does not also apply to AHFC.
  • All other findings – If the lender determines the mortgage is acceptable to AHFC, the loan must be manually underwritten and fully documented according to the criteria as set forth in Part IV of the AHFC Selling Guide. AHFC Form UND-1, Comprehensive Risk Assessment for Manual Underwriting must be completed for all manually underwritten loans and retained in the lender’s file.

For loans approved using LP, the Lender must comply with all the requirements outlined in the most current Loan Prospector User Guide. The applicable warranties and waivers outlined in this guide will also apply to AHFC loans.

Rural Development Guaranteed Underwriting System (GUS)

When the GUS Underwriting Findings Report reflects:

  • Accept/Eligible - The loan is acceptable to AHFC provided all the conditions of the findings report have been satisfied and the loan file has been documented according to the GUS findings report. Lenders must meet all requirements outlined in the Lender’s Required Conditions of the GUS Underwriting Findings Report.

Standard Criteria

The following applies regardless of AUS findings/feedback (includes Conventional, VA, RD FHA, and HUD184 loans):

  • All loans with credit scores below 620 will be ineligible for purchase.
  • All loans with a total debt ratio exceeding 50% will be ineligible for purchase.
  • Regardless of loan type, lenders must use standard documentation to verify employment and income on income-restricted loan programs such as TEP, IRRLIB and RELP, and on the Teachers’ and Health Care Professionals’ Housing Loan Program. (Refer to Section 4003.01)
  • Alaska Statute prohibits AHFC from purchasing any loan when the borrower has a past due child support obligation. Borrowers must pay child support arrearages prior to loan closing. There are no exceptions. (Refer to Section 4005.08)
  • Automated underwriting may not be used on Rural Non-Owner Occupied loans or Type II Manufactured Home loans.

FHA and HUD 184
(Section 4000.01)

Effective immediately, FHA/HUD loans are no longer required to be underwritten to AHFC Credit Guidelines. FHA/HUD loans must be underwritten according to FHA/HUD guidelines. However, both the borrower and property must meet all AHFC program requirements.

VA Funding Fee
(Section 6001.03)

Veterans may finance up to 100% of the purchase price, plus the funding fee, provided the borrower’s guaranty equals at least 25% of the loan and the maximum amount of the guaranty available to the veteran is applied to the loan. If the borrower’s guaranty is less than 25% of the loan, a down payment equal to the difference is required.

Streamline Refinance Interest Rates

Seller Servicer Memorandum 09-06 announced that, for a limited time, reduced interest rates are available for purchase transactions under the Tax-Exempt First Time Homebuyer Program (TEP), Veteran Tax-Exempt Program (VTEP), and Veterans Mortgage Program (VMP). The interest rates published on AHFC’s internet website reflect the reduced rates. However, lenders are reminded that streamline refinance transactions under the TEP, VTEP, and VMP receive the published rate plus .50%.

The Taxable Program may be used to streamline refinance a TEP, VTEP, or VMP loan when the taxable rate is lower than the published TEP, VTEP, and VMP rates plus the .50%.


FORMS GUIDE REVISIONS: CONTACT UNDERWRITING

Available in PDF (Adobe Acrobat or Adobe Reader is required to read and print PDF files).

New/Revised/Deleted Forms

UND-1             New 11/09

Attachments

Seller’s Guide Part IV
Seller’s Guide Section 6003.01
UND-1