FannieMae published Announcement SEL-2012-01 on January 31, 2012, changing the methodology on how to calculate the LTV for construction-to-perm transactions that are processed as refinances (see below). This change allows the use of fair market value regardless of how long the borrower has owned the lot, eliminating the use of the acquisition cost approach if the borrower had owned the lot for less than 12 months. Gateway will adopt this new policy immediately.
Please refer to the above announcement for additional information regarding this subject as well as the following topics:
- DU Implementation of Updated Guidelines
- Miscellaneous Selling Guide Updates