15-41: Fannie Mae SEL 2015-08: Various Changes
For all conforming DU approved new or re-submitted transactions, PennyMac is announcing the following changes. Effective dates are indicated below.
Affordable Loan-To-Value Ratio Calculations Added to Desktop Underwriter
Fannie Mae is updating DU the weekend of August 15, 2015 to add an affordable LTV ratio calculation, allowing for Lenders to indicate in DU that the loan will be underwritten using one of the affordable lending product options. DU will then calculate the LTV/CLTV/HCLTV based solely on the appraised value for purchase transactions, and not the lesser of the sales price or the appraised value.
At this time, loans approved through DU using the affordable LTV ratio calculation will not be eligible for purchase. PennyMac will announce at a future date when these loans will become eligible for purchase.
Affordable loans utilizing the standard LTV calculation will continue to be eligible for purchase.
Increased LTV, CLTV, HCLTV Ratios of Limited Project Reviews
Previously, established owner-occupied condos eligible for Limited Review have been limited to 80% LTV/CLTV/HCLTV.
Effective immediately, established owner-occupied condos will be eligible for Limited Review up to 90% LTV/CLTV/HCLTV. Per Fannie Mae SEL 2015-08, the DU messaging will not be updated until a future release. Until DU is updated, the DU messaging requiring a Full Review may be disregarded for established owner-occupied condos with LTV/CLTV/HCLTV of 80% to 90%. This increase is also applicable to the CLTV/HCLTV ratios for Limited Reviews of owner-occupied condos in Florida (the LTV ratio is remaining at 75%).
As a reminder, Lenders must include all documentation that evidence the project meets condo eligibility requirements. See Announcement 15-07 for additional details on acceptable condo documentation.
Policy for Leased Solar Panels
PennyMac will purchase loans on properties with solar panels in accordance with Fannie Mae’s requirements.
Effective immediately, Fannie Mae has expanded the circumstances when the payment for solar panels that are leased from or owned by a third party under a power purchase agreement or other similar arrangement may be excluded. In additional, the property casualty and title insurance requirements have been streamlined to reduce complexity. Please see Fannie Mae’s Selling Guide, section B2-3-04 for full details on the updated requirements.
Please contact your Sales Representative with any questions.