JUNE 8TH 2009 ANNOUNCEMENT- FANNIE MAE 09-19 - UPDATE!

Tuesday, July 7th, 2009

 

To All Metlife Approved Brokers 

 

Be sure you are aware of the following up coming changes:

RE:  JUNE 8TH 2009 ANNOUNCEMENT- FANNIE MAE 09-19

 

THE EFFECTIVE DATE FOR THESE CHANGES applies to ALL  Loans applications dated after  9.1.2009

 

I wanted to bring this to your attention so you were prepared for some of the changes headed our way.  Based on the 09-19 Fannie Announcement there are some significant changes that will affect Operations, Credit and Production.  I have listed a few important ones below.  Please take a moment to read over the attachment and below summary....

 

VERBAL VOE's

 

CURRENT POLICY in P&P:  "Verbal verification of employment must be completed within 30 days prior to loan closing or, if closed loan purchase prior to loan purchase"

 

JUNE 8TH 2009 ANNOUNCEMENT- FANNIE MAE 09-19 Policy: 

 'The Lender must confirm the borrower's employment status within 10 days prior to closing date...'  SEE ATTACHED Pg 5

 

VERIFICATION OF STOCKS, Bonds, Retirement Accounts

 

CURRENT POLICY in P& P: 

 

1.  Retirement Accounts- "Generally, only 70% of the vested amount of the funds (minus the amount of any loan against account) can be considered in the asset analysis."  

 

2.  Stocks, Bonds, Mutual Funds (Aug/11/2006) - "Stock is an instrument of ownership in a corporation that represents a claim on the corporation's assets and profits.  Stocks are readily marketable and are considered a liquid cash asset"

 

3.  Stock Options- "Vested stock options are acceptable as reserves."

 

JUNE 8TH 2009 ANNOUNCEMENT- FANNIE MAE 09-19 Policy

 

Determining Assets when used for reserves: - SEE ATTACHED pg 6

 

1. Retirement funds- 60% of the vested value may be used for reserves (reduced from 70%)

 

2. Stocks, Bonds, Mutual Funds - 70% of the value may be used as (reserves reduced from 100%)

 

3.  Stock Options and NON-VESTED restricted stock are NO longer eligible for use as reserves

 

MAX AGE of CREDIT DOCS

 

Will be reduced from 120 to 90 days for existing construction AND 180 to 120 days for new construction - Page 1

 

TRAILING SECONDARY WAGE EARNER INCOME - Will be eliminated as an eligible income source - Page 5 

 

Rita Kama-Kimura

Wholesale Account Representative

(808)  275-8006   direct

(808)  864-0520   cellular 

 

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