Are existing loans with lender-paid pool insurance coverage, investor-paid (i.e., Fannie Mae– paid) pool insurance, or other secondary market coverage eligible for Refi Plus refinances?
Most existing Fannie Mae loans with lender-paid pool coverage (sometimes referred to as GSE pool insurance), investor-paid pool coverage, or secondary market agreements (to the extent the secondary market coverage reverts to the original primary MI) are now eligible for the Refi Plus DU and manual underwriting options (see Announcement 09-20). Existing loans with these types of credit enhancement that were delivered to Fannie Mae before March 1, 2009 were added to the DU Refi Plus database as part of the DU Version 7.1 June Update. Existing loans that had these types of credit enhancements added after loan closing, and the coverage was necessary to meet Fannie Mae minimum credit enhancement requirements applicable to loans with LTVs in excess of 80 percent, remain ineligible. Lenders may contact their account teams to discuss other options for refinances of existing loans that have these forms of alternative credit enhancement arrangements, including options for loans that are excluded
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- Are existing Fannie Mae loans with lender-paid, primary MI coverage eligible for Refi Plus?
