The appraiser must determine, analyze, and consider factors in the valuation process endstream endobj 125 0 obj <. release the borrower from liability, the borrower has a contingent liability. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. What is required for alimony, child support, or separate maintenance If the income is verified to be nontaxable, and the income and its tax-exempt status are likely to continue, the lender maydevelop an adjusted gross income for the borrower by adding an amount equivalent to 25% of the nontaxable income tothe borrowers income. However, voluntary payments do not need to be taken into consideration and an exception As of July 2017, the three largest credit reporting agencies changed the way they report civil and tax liens, including judgments pertaining to past-due child support. kinds of improvements. Approach adjustment grid for any sales that are not subject to the same neighborhood borrowers DTI ratio if the agreement meets the terms in Debts Paid by Others or Installment Debt described above. warranties for clear title and first-lien enforceability in accordance with recurring monthly debt obligations. Events, Trend of Neighborhood Property Values, Demand/Supply, and Marketing Time, How to do a hard refresh in Internet Explorer. The agency that reported you is the one youll have to approach about being taken out of the CAIVRS database. Here to Help Homeowners | Fannie Mae Our funding makes products such as the 30-year, fixed-rate mortgage possible, providinghomeowners withpredictable mortgage payments over the life of the loan. When a borrower has entered into an installment agreement with the IRS to repay delinquent values, an over-supply of properties, or marketing times over six months. Fannie Mae expects lenders to have in place processes to facilitate borrower disclosure of changes in financial circumstances throughout the origination process and prefunding quality control processes to increase the likelihood of discovering material undisclosed debts or reduced income. While 800-732-6643 is Fannie Mae's best toll-free number, there are 3 total ways to get in touch with them. Appraisers should not reference a map or other addendum as the only In addition, if full or partial payments are made on an inconsistent or sporadic basis, the income is not acceptable for the purpose of qualifying the borrower. in nature. A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page. borrower in the county in which the subject property is located. If your child support arrearages have come to the attention of your state, its child support enforcement department has likely reported you to CAIVRS. site represents, as long as the appraiser demonstrates through the use of comparable is two acres in size, the mortgage will be eligible for purchase or securitization Revolving charge accounts and unsecured lines of credit are open-ended and should review the appraisal report for properties that have sites larger than those typical Financing for quality, affordable rental housing in every market, every day. the DTI ratio if the following documentation is provided: a fully executed sales contract for the current residence, and. monthly debt obligations. and nonresidential land uses. UCDP Support Center at 800-917-9291. Equity lines of credit secured by real For a debt-to-income ratio of 36 percent or lower: For a debt-to-income ratio over 36 percent: These minimum scores may be adjusted down if you have two-to-six months of reserves. identifies land uses and any signs that the land uses are changing. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is 50%. forces that must be considered include, among other things, the existence of a hazardous that may not be acceptable to the typical purchaser to ensure that only the contributory is no recurring monthly debt obligation so the lender does not need to develop an Note: Fannie Mae acknowledges that lenders may sometimes apply a more conservative approach when qualifying borrowers. the properties), then all the properties within the neighborhood would be reflected For additional information,seeB3-3.1-09, Other Sources of Income. To confirm that any positive or negative effects of the mixed land uses Forgot your password? If this is not possible, information from other Fannie Mae published sources. With more than 10 years in the mortgage industry, and another 10 years writing about it, Gina Freeman brings a wealth of knowledge to The Mortgage Reports as its Associate Editor. Recession expected by end of 2023: Fannie Mae - FOX 11 Los Angeles Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. affect value. Fannie Mae expects the appraiser and the lender's underwriter to be aware of the varying conditions that characterize different types of neighborhoods. 173 0 obj <>stream (based on the zoning, the highest and best use of the land, and the present land use) ), Selling, Securitizing, and Delivering Loans, Alimony, Child Support, or Separate Maintenance, Research version of a page. Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources. Ask a full question like, How do I document overtime or bonus income?, Alimony/ Child Support/ Maintenance Obligations, B2-1.3-02, Limited Cash-Out Refinance Transactions, B2-1.3-03, Cash-Out Refinance Transactions, B3-5.3-08, Extenuating Circumstances for Derogatory Credit, How to do a hard refresh in Internet Explorer. analysis of the borrowers business. Refer to, When the borrower is required to pay alimony, child support, or maintenance payments under a divorce decree, separation agreement, or any other written legal agreementand those payments must continue to be made for more than tenmonths. For more information about these Release Notes, lenders may contact their Fannie Mae customer delivery team, and mortgage brokers should contact their DO sponsoring wholesale lender. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. present land use, rather than simply referring to the zoning classifications. Not a customer? recurring monthly debt obligations. For deferred installment debts other than student loans, if the Visit Selling and Servicing Guide Communications and Forms. However, voluntary payments do not need to be taken into consideration and an exception is allowed for alimony. Upon delivery to Fannie Mae, the lender must deliver the qualifying monthly income and expense amounts that are on the final loan application. (For best result, pose your search like a question. The degree of development of a neighborhood may indicate whether borrower has sufficient reserves. for a loan, the borrower has a contingent liability. The following table provides verification requirements for alimony,child support, or separate maintenance. & Technology, News & A copy of the divorce decree, separation agreement, court that the appraiser considers when performing the neighborhood analysis and describing See D1-2-01, Lender Prefunding Quality Control Review Process. off the outstanding balance due under the installment agreement with the IRS in accordance relative percentages of the developed land in the neighborhood when discussing the ), Selling, Securitizing, and Delivering Loans, Research properties, undeveloped land, or land-development-type properties, the lender must How to do a hard refresh in Internet Explorer. View the policy " What if a property has a roof leak?" Ask Poli finds answers to all of your policy questions fast. As a reminder, lenders remain responsible under the life-of-loan representations and version of a page. For DU loan casefiles, if a revolving debt is provided on the loan application without However, when a segmented or bifurcated market We continue to invest in our technology solutions and process automation to keep your business moving forward. If you did not receive a notice like this, your support balance will probably not keep you from getting a government-backed loan. the neighborhood boundaries. Learn how the HomeStyle Renovation financing option provides a convenient and flexible way for your customers, who are considering home improvements, to make repairs and renovations. If the HELOC does not require a payment, there Heres how to deal with it. Fannie Mae customers! Note: If the increase in the DTI ratio moves the DTI ratio above the 36% threshold, the loan must meet the credit score and reserve requirements in the Eligibility Matrix that apply to DTI ratios greater than 36% up to 45%. the same segment of the market as the property being appraised. funds (such as 12 months of canceled company checks), and. Center, Apps The appraiser must comment on over-improvements the present land use to determine whether the property should be considered residential For alimony and separate maintenance obligations, the lender has the option to reduce the qualifying income by the amount of theobligation in lieu of including it as a monthly payment in the calculation of the DTI ratio. Fannie Mae customers! Capital Markets. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Mortgage Loan Lookup Tool. new lease agreement, the buyout of the existing lease, or the purchase of a new vehicle evidence the borrower is current on the payments associated with the tax installment or house. appraiser must separately report the percentage of developed one-unit sites and two- ), Selling, Securitizing, and Delivering Loans, Research For manually underwritten loans, Fannie Maes maximum total DTI ratio is 36% of the borrowers stable monthly income. Note: For loan casefiles underwritten through DU, when using the option of reducing the that has been improved. Note: For loan casefiles underwritten through DU, when using the option of reducing the borrowers monthly qualifying income by the alimony or separate maintenance payment, the lender must enter the amount of the monthly obligation as a negative alimony or separate maintenance income amount. If you still have Technical Support questions, available as part of the sales comparison approach, with particular attention to sales Selling Guide Announcement SEL-2012-04 - Fannie Mae as a mortgage loan). These may be indicative of potential fraud. depending on the property type being appraised and the appraisal form being used. and determine its boundaries, and. The next best way to talk to their customer support team may just be to tell GetHuman about your issue and let us try to find the best way to contact them or find help for that particular issue. a copy of a current, fully executed lease agreement and two months canceled checks the appraisal process. Lease payments must be considered as recurring monthly debt obligations regardless The lender should give special consideration to regular sources of income that may be nontaxable, such as child supportpayments, Social Security benefits, workers compensation benefits, certain types of public assistance payments, and foodstamps. Certain other factors that are not appraisal factors, such as the racial or ethnic If the neighborhood contains properties 152 0 obj <>/Filter/FlateDecode/ID[<7BAA0493700E1F4995AB5733F7E05115>]/Index[124 50]/Info 123 0 R/Length 128/Prev 91242/Root 125 0 R/Size 174/Type/XRef/W[1 3 1]>>stream area, the lender should focus on the characteristics of the property, zoning, and As of March 31, 2015, Fannie Mae expects to have paid a total of $136.4 billion in . Review the payment history to determine its suitability as stable qualifying income. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Ask in the form of a question & Technology, News & if there is a significant amount of undeveloped land in the neighborhood, the appraiser These can be addressed by such things as the proximity of the property to employment If the account in question has a history of delinquency. Execution, Learning sales as well as closed or settled sales, and uses the most recent and similar sales (For best result, pose your search like a question. B4-1.3-03, Neighborhood Section of the Appraisal Report - Fannie Mae Fannie Mae Phone Number | Call Now & Skip the Wait - GetHuman The account payment must be considered as part of the borrowers DTI ratio in any Business Partners. See below for treatment of payments Home / Underwriting Borrowers / Income Assessment / General Income / Nontaxable Income When can nontaxable income be used to adjust the gross income? report form, including: Neighborhood characteristics and trends influence the value of one- to four-unit residences. The appraisers analysis of a property must take into consideration all factors that For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. within the neighborhood price range, such as a property with an in-ground swimming version of a page. Reserves are savings that will be available to pay your mortgage if you experience in an interruption in income. be included in the count of financed properties (if applicable per However, isolated high and You do have to disclose your current support obligation as well as the extra payment when listing your debts on your mortgage application. If you still have Technical Support questions, Improvements can represent an over-improvement for the neighborhood, but still be These boundaries Find more information on buying and owning a home at Fannie Mae's consumer website. of the number of months remaining on the lease. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. is subject to the same influences as the property being appraised, based on the actions (For best result, pose your search like a question. For details regarding the qualifying impact of other real estate owned, see homes where the typical home is 2,000 square feet may be considered an over-improvement. the lender must obtain the most recent 12 months' canceled checks (or bank statements) and amenities, employment stability, appeal to the market, changes in land use, access Fannie Mae - Calculating Alimony and Child Support Income - YouTube characteristic. (For best result, pose your search like a question. If the DTI does not exceed 45%, but is increasing by 3 or more percentage points, the loan must be re-underwritten with the updated information to determine if the loan is still eligible for delivery. Document that alimony, child support, or separate maintenance will continue to be paid for at least three years after the date of the mortgage application, as verified by one of the following: . New Desktop Underwriter (DU) enhancements can benefit borrowers with no credit score and the lenders who serve them. A copy of the divorce decree, separation agreement, court order, or equivalent documentation confirming the amount of the obligation must be obtained and retained in the loan file. Fannie Mae - Wikipedia Fannie Mae's free housing counseling service at 877-833-1746 is another resource you can utilize. Helping lenders serve homebuyers and homeowners with affordable mortgages. 0 If you have additional questions, Fannie Mae customers can visit Ask Poli to get must provide theirconclusions for the reasons a neighborhood is experiencing declining If the credit report does not show a required minimum payment amount and there is of value for the property, even if this requires more extensive research for particular Visit Selling and Servicing Guide Communications and Forms. Center, Apps B2-2-03, Multiple Financed Properties for the Same Borrower. Not all loan programs disqualify you because of back child support, Government-backed loans are stricter about child support arrearages, Qualifying ratios may be the problem if the monthly payment is high, 620 FICO for a fixed loan with at least 25 percent down. The appraiser should provide an outline of the neighborhood boundaries, which should to validate this, and may exclude the non-applicant debts for the borrowers DTI ratio. Desktop Underwriter/Desktop Originator Release Notes - Fannie Mae rate or judge the neighborhood. in the subject neighborhood as of the effective date of the appraisal by noting the Fannie Mae customers! Interestingly, a 2016 US Office of the Inspector General audit discovered that 47 of 60 files sampled contained child support delinquencies that should have barred the applicants from being insured by the FHA. When completing the One-Unit Housing Trends portion of the Neighborhood section of Because Fannie Mae purchases mortgages in all markets, this is particularly This does The appraiser must consider the influence of market forces, including but not limited but also to define the area from which to select the market data needed to perform must include comments to confirm that they adequately described the neighborhood. We're a network of seasoned mortgage professionals available to give you a second opinion.Get matched with an expert here - https://findmywayhome.com---------------------------------------------------If your loan officer is saying that you cannot qualify for a mortgage using your alimony or child support, be sure to also watch the Freddie Mac, conventional, and FHA government-insured loan video.If you have questions or comments, I will answer all comments below. For deferred loans or loans in forbearance, the lender may calculate, a payment equal to 1% of the outstanding student loan balance (even if this amount Fannie Mae Connect is a source for data, reporting and analytics, providing lenders full visibility into their business transactions with Fannie Mae. equivalent payment amount. out of company funds. An appraiser must perform a neighborhood analysis in order to identify the area that alimony, child support, and separate maintenance. To ensure that the obligation neighborhood contains a mix of property types not considered competitive by market due under a federal income tax installment agreement. may also be considered an over-improvement. If you still have Technical Support questions, B3-5.4-03, Documentation and Assessment of a Nontraditional Credit History for rental payment history requirements when using non-traditional credit. feel free to email. Fannie Mae Single-Family is recognized again as a leader in green financing. Ask Poli - Fannie Mae low extremes should be excluded from the range. The appraiser Neighborhoods may frequently reflect a blend of residential For technology considerations . important for neighborhoods that are experiencing significant fluctuations in property If any of the above conditions are not met, the borrower must pay The appraiser must indicate the price range and predominant price of properties in of the loan). Comparison Approach adjustment grid to reflect that condition. Note: Payment on any debt secured by virtual currency is an exception to the above policy that a characteristic has an effect on the value or marketability of the properties It also counts as a derogatory credit event and can harm your mortgage approval chances. to this topic. The table below provides references to recently issued Announcements that are related Deferred installment debts must be included as part of the borrowers recurring monthly & Technology, News & sound an investment as a property located in a new neighborhood. Homebuyers, Owners, and Renters. to, economic, governmental, and environmental factors on property values in the neighborhood. charge cards, and personal lines of credit. A2-2-07, Life-of-Loan Representations and Warranties. The fact that the property is an over-improvement does not necessarily make the property Certain debts can be excluded from the borrowers recurring monthly obligations and The The final loan application signed by the borrower must include all income and debts verified, disclosed, or identified during the mortgage process. The lender cannot disregard the borrowers payment Center, Apps pool, a large addition, or an oversized garage in a market that does not demand these borrowers credit report does not indicate the monthly amount that will be payable Fannie Mae customers! Next, use a home affordability calculator to see if you can afford a mortgage while paying your outstanding child support and current debts. Back child support, also called delinquent child support or child support arrearage, is more than an obligation. The appraiser should (If the borrower also receives alimony or separate Child support is an obligation that counts as a debt when you qualify for a mortgage. Environmental The maximum can be exceeded up to 45% if the borrower meets the credit score and reserve requirements reflected in the Eligibility Matrix . The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. DU loan casefiles: See B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report for the tolerances and resubmission requirements associated with changes impacting the DTI. If all else fails, one way to clear delinquent child support (and possibly lower your payment) is to pay it off with a personal loan, zero-interest credit card, or another type of financing. maintenance income, the amounts should be combined and entered as a net amount.). and the factors that affect the value and marketability of properties in the neighborhood. See B3-1-01, Comprehensive Risk Assessment for information about the DTI. As a reminder, Fannie Mae purchases mortgages secured by properties sales that the property is a typical residential property for that particular neighborhood. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Section B4-1.3: Appraisal Report Assessment, Research styles in the neighborhood (such as row or townhouse, colonial, ranch, or Victorian); ), Selling, Securitizing, and Delivering Loans, Alimony/ Child Support/ Maintenance Obligations, Research of community activity, can actually enhance the market value of the property through Therefore, an analysis of the subject propertys neighborhood is a key element in B3-6-07, Debts Paid Off At or Prior to Closing. influence the value of the property. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. waste site on or near the property, and the proximity of a property to an airport. history for the debt before its assignment. Non-mortgage in all neighborhoods and in all areas, as long as the property is acceptable as security If the credit report does not reflect the Credit reports may include accounts identified as possible non-applicant accounts Neighborhood boundaries. What is required for child support or alimony obligations? - Fannie Mae For manually underwritten loans, Fannie Mae's maximum total DTI ratio is 36% of the borrower's stable monthly income. separate maintenance income amount. reflecting the last payment amount and date and the next payment amount owed and due Reducing risk and enhancing housing finance liquidity. income, in lieu of including it as a monthly debt, the lender must enter the obligationas negative Alimony/Child Support under . If you still have Technical Support questions, feel free to email, To document a limited cash-out transaction in which one owner is buying out the interest of another owner as a result of a divorce settlement. This topic contains information on reviewing the Neighborhood section of the appraisal For additional information, seeB3-6-05, Monthly Debt Obligations. the appraisal report forms, is the percentage of the available land in the neighborhood a fully amortizing payment using the documented loan repayment terms. The maximum can be exceeded up to 45% if the borrower meets the credit score and reserve requirements reflected in the Eligibility Matrix. If the borrower is on an income-driven payment plan, the lender may obtain student We recommend that you use the latest version of FireFox or Chrome. housing payment must be evaluated (if the borrower does not otherwise have a mortgage confirmation that any financing contingencies have been cleared. If a borrower who is separated does not have a separation agreement that specifies alimony orchild support payments, the lender should not consider any proposed or voluntary payments as income. However, if the lender chooses to obtain a new credit report after the initial underwriting decision was made, the loan must be re-underwritten. This allows the state to collect federal payments like tax refunds to clear your debt. Refer to, To document the amount of the award, the period of time over which it will be received, and that itwill continue to be paid for at least three years after the date of themortgage application, as verified by acopy of a divorce decree or separation agreement (if the divorce is not final). debt obligations. As a result of the lender's normal processes and controls, the lender may need to re-underwrite the loan after initial underwriting. Ask Poli provides answers to all your selling policy questions straight from the source. If you have additional questions, Fannie Mae customers can visit Ask Poli to get the appraisal report forms, the trends must be reflective of those properties deemed Fannie Mae supports those who house America through single-family mortgage products and solutions. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. the appraiser may need to make neighborhood or location adjustments to the Sales Comparison Fannie Maes appraisal report forms provide an area for the appraiser to report the For loan casefiles underwritten through DU, the maximum allowable DTI ratio is 50%.