Fannie Mae issued Lender Letter 2021-11, announcing additional details with respect to the revised General QM Rule. Per the Lender Letter, Fannie Mae provided additional details with respect to underwriting and loan eligibility policies, and Desktop Underwriter (DU) implementation policies. The updated requirements include:
- Eligibility requirements for ATR Covered Loans and Exempt Loans.
Fannie Mae also announced that the requirements of the Lender Letter (and any related future updates) supersede purchase documents that contain one or more negotiated provisions with terms that are inconsistent with the requirements of the Lender Letter.
In addition, Fannie Mae:
- Paused the purchase of high LTV refinance loans until further notice;
- Posted a table describing qualifying interest rate requirements applicable to ARMs; and
- Announced policy changes related to the retirement of ARM loans based on the Constant Maturity Treasury Securities index.
Revisions related to underwriting and loan eligibility policies are effective with application dates on or after July 1, 2021 (however, revisions may be applied immediately). Revisions related to updates made to the qualifying interest rate requirements for short-term ARMs are effective for loan casefiles submitted or resubmitted to DU on or after July 17, 2021. The revision for a high LTV refinance loan is effective for loan casefiles created in DU on or after July 1, 2021.
Click to view the Fannie Mae Lender Letter 2021-11: https://www.tenaco.com/wp-content/uploads/2021/06/Fannie-Mae-Lender-Letter-LL-2021-11-05-26-21.pdf
