Fannie Mae Update – Covid-19
March 26, 2020
With guidance from FNMA and our Investors, LenderSelect Mortgage Group (LSMG) will require an additional recertification verbal VOE within 2 days of loan closing.
In order to clear loans on time :
- The Processor will initially provide the 10 day verbal VOE at clear to close.
- The Underwriter will add a condition for a 2 day recertification verbal VOE prior to closing.
- The Processor will be responsible for satisfying this condition with a 2 day VOE recertification and place it in the loan file. Closing will not proceed unless the 2 day verbal is in the file.
If a TPO Partner is originating a Correspondent loan and they would like to proceed without the VOE, they may email their LSMG Account Representative for an exception. The LSMG Account Representative will then contact LSMG Underwriting for an exception. Exceptions will not be granted on brokered loans.
Appraisals: Fannie Mae and Freddie Mac have approved temporary relief in regards to appraisals. Please remember to encourage a full appraisal first. Appraisal waivers are still accepted as long as the AUS feedback indicates the waiver. Please note the exterior appraisal is only for purchase money and Fannie owned rate term refinances. To see if the property is Fannie owned – you may go to the loan look up tool at https://www.knowyouroptions.com/loanlookup. Please make sure you put a copy of the loan look up tool screen in Encompass and/or TPO Connect. Additionally, if the loan requires MI, please confirm with the MI company first to ensure they will approve a drive by appraisal.
Below you will find additional guidance from Fannie Mae regarding originations and appraisals.
Thank you for your attention to this important update – please stay well and safe!