Correspondent Updates

December 15, 2014

Gateway will now purchase conforming 97% LTV loans, subject to agency requirements.  Fannie Mae announced an increase in the maximum LTV, CLTV, and HCLTV ratios for certain principal residence transactions. Fannie Mae will offer 97% LTV financing to help home buyers who would otherwise qualify for a mortgage but may not have the resources for a larger down payment and to help borrowers with an existing Fannie Mae mortgage who may not be eligible to refinance using DU Refi Plus™.

Gateway Mortgage Group will participate in the standard (non-MCM) portion of this expansion. The following is a brief synopsis of what Gateway will require:

– Effective dates: available for loan case files underwritten through DU Version 9.2, which was implemented the weekend of December 13, 2014.

– Fixed-rate loans with terms up to 30 years.

– 1 unit, principal residence only.  Second homes and investment properties are not allowed.

– At least one borrower must be a first-time home buyer.

– Purchase or limited cash-out refinance.  On refinance transactions, the lender must document that the existing loan being refinanced is owned (or securitized) by Fannie Mae, which may be checked through https://knowyouroptions.com/loanlookup.

– Subject to 35% MI coverage. Gateway will not accept the 18% coverage with LLPA. Full coverage is required.

Please review FNMA announcement SEL-2014-15 for complete details, and contact your Regional Sales Manager with questions.

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