Are loans currently subject to lender recourse and/or indemnification agreements eligible for Refi Plus?
Many existing Fannie Mae loans that are subject to recourse and/or indemnification agreements are eligible for Refi Plus (DU or manual underwriting). Effective with loan applications dated on or after February 1, 2010 for Refi Plus (manual underwriting), existing mortgage loans that are subject to full, unconditional recourse agreements, including loans with less than life-of-loan agreements, are eligible only if the new mortgage loan is delivered with full, unconditional life-of-loan recourse, designated with Special Feature Code 001. Existing mortgage loans that are subject to conditional or other non–full recourse agreements remain eligible for Refi Plus and (not applicable to DU Refi Plus; refer to Announcements 09-20 and 09-37 for details). Some recourse loans delivered to Fannie Mae prior to March 1, 2009, were added to the DU Refi Plus database effective with the DU Version 7.1 June Update. Existing loans that are subject to these types of agreements, and the coverage was necess
Related Questions
- Are existing loans with financed MI eligible for Refi Plus, and are there any differences from other loans in how the MI coverage is continued?
- Does the lender need to verify the borrower’s employment and income for the loan to be eligible for Refi Plus?
- Are existing Fannie Mae loans with lender-paid, primary MI coverage eligible for Refi Plus?
