Real Estate Financial News Blog

HARP 2 Approval Changes for DU 9.0 "Better for Florida"
October 4th, 2012 4:46 PM
 

DU Version 9.0 Update

    

During the weekend of October 20th, Fannie will be upgrading DU to version 9.0. 

 

DU Approval Changes

 

Version 9.0 is entirely removing the Expanded Approval recommendations for all loan types except DU Refi Plus. An update to the DU credit risk assessment is expected to result a greater number of Du Refi Plus loans receiving an Approve recommendation. 

 

Appraisal Documentation Requirements

 

Version 9.0 will no longer be offering appraisal/inspection types 2055, 2075, 1075 and 2095. DU will only be recommending full appraisal types. However, there will still be casefiles which receive the property fieldwork waiver option.

 

Reserve Requirements

 

A minimum of 6 months reserves will now be required for all 2-4 unit principal residence transactions. This will not apply for DU Refi Plus loans.

 

Disputed Tradelines

 

As the result of a logic update, a fewer number of disputed tradeline messages will be issued. Tradelines not indicated as disputed by DU do not require additional investigation. However, payment on the tradeline must be included in the expense ratio if the account does belong to the borrower.

 

Income Documentation

 

The following chart represents the minimum employment documentation required by DU Version 9.0:

 

Income Type

DU Documentation

DU Refi Plus Documentation

Base Pay (salary or hourly)

Paystub + W-2 covering most recent year

Paystub only

Bonus, Overtime, and Commission < 25%

Paystub + W-2s covering most recent two-year period

Paystub only

Commission ≥ 25%

Paystub, W-2s, and personal tax returns covering most recent two-year period

Personal tax return covering most recent year

Self-Employment

Personal and business tax returns covering most recent two-year period

Personal tax return covering most recent year

Second Job, not self-employed

Paystub + W-2s covering most recent two-year period

Paystub + W-2s covering most recent two-year period

Second Job, self-employed

Personal and business tax returns covering most recent two-year period

Personal and business tax returns covering most recent two-year period


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Posted by Ron Hobbs on October 4th, 2012 4:46 PMPost a Comment