Launch Please contact your property manager or building owner for more information. Fannie Mae's Disaster Response Network has published a guide for renters affected by the coronavirus (COVID-19). Refer to B3-3.1-01, General Income Information. When the borrower experiences a gap of employment due to COVID-19 and their source of income is variable, is there a minimum amount of documented time the borrower is required to be back at work after the gap period? Note:  The numbering sequence is from the PDF document that contains all COVID-19 Selling FAQs. March 24, 2020. Once it has been determined that any portion of the PPP loan must be repaid, follow the Selling Guide requirements for loans paid by a business. Can the lender use the year-to-date profit and loss statement to calculate qualifying income? If you have questions about specific deals, please contact your Deal Team. Contact your property We’re here to help. If the income is derived from a property that is not the subject property, there are no restrictions on the property type. Streamline your refinance process. Yes, reference the guidelines and flexibilities announced in LL-2020-03. For student loans, if the monthly payment is provided on the credit report, the lender may use that amount for qualifying purposes. 15, 2020, if a self-employed borrower has not filed 2019 income tax returns, is an audited Profit and Loss Statement for 2019 required in order to support qualifying income? Unless the lender has knowledge to the contrary, if the borrower is actively employed, the income does not have a defined expiration date and the applicable history of receipt of the income is documented (per the specific income type), the lender may conclude that the income is stable, predictable, and likely to continue. Fannie Mae’s renter hotline number is 1-877-542-9723 and Freddie Mac’s renter hotline number is 1-800-404-3097. No, Fannie Mae’s existing policies related to disasters do not apply to loans impacted by COVID-19. If I provide a lease to verify rental income, does it have to comply with the Age of Documentation requirements in Lender Letter LL-2020-03? Emergency Rental and Mortgage Assistance Program (ERMA) ERMA can provide rental and mortgage assistance to low-income households who have been impacted by the crisis and may not be eligible for RAFT. Our teams are fully operational and ready to execute your multifamily business. Refer to B3-3.1-01, General Income Information. For best results, pose your search like a question. Can borrowers still use trust accounts for down payment, closing costs, and reserves? The temporary requirements apply to mortgages described in B5-7-03, High LTV Refinance Alternative Qualification Path. Please visit our COVID-19 Investor Resources page for the latest investor news and information related to COVID-19. 11, 2020, is the loan eligible for delivery to Fannie Mae? information from other Fannie Mae published sources. A circle with a colored border representing one's progress through a lesson. These loans are designed to provide a direct incentive for small businesses to keep their workers on the payroll. All guidance specific to COVID-19 will be communicated through Lender Letters and FAQ documents such as this. If the trend is declining, the income may not be stable. If borrowers and renters are having a hard time making their monthly payments, mortgage lenders can offer relief. WASHINGTON, DC – May 7, 2020 – Fannie Mae (FNMA/OTCQB) announced it has introduced a Renters Resource Finder to help renters facing financial hardship due to COVID-19 understand the options available to them. The COVID-19 pandemic has had a particularly severe impact on renters, minorities, and lower-income households according to the third quarter National Housing Survey®, as the overall results indicate broad financial and employment repercussions due to the virus. These FAQs provide additional information on the temporary policies. Hosts in the U.S. will be able to work with participating lenders to recognize Airbnb home sharing income from their primary residence as part of their mortgage refinancing application. If the lender determines that the business has not been adversely impacted and the amount of income calculated following standard 1084 methodology is accurate and meets the requirements outlined in Selling Guide. Income Guidance Related to COVID-19. The existence of a PPP loan could be helpful information in analyzing the borrower's business. This may be less than the year-to-date average represented on the year-to-date profit and loss statement based on the timeframe the business was impacted. The program response to COVID-19 includes funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act (S.3548 – 116th Congress (2019-2020)) and reprogrammed TDHCA funds. This replaces the prior language (applicable to loans with application dates beginning on Jun. If you are a homeowner, have your financial information handy and contact your mortgage servicer (the company listed on your monthly statement) to request help if you’re concerned about your mortgage payments. For example, rental income from a commercial property owned by the borrower is acceptable if the income otherwise meets all other requirements. As a DUS lender, you can grant forbearance to a customer with the delegation Fannie Mae … – The Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac (the Enterprises) will extend several loan origination flexibilities until August 31, 2020 to ensure continued support for borrowers during the COVID-19 national emergency. Are there acceptable alternatives if a lender is unable to obtain a verbal (VOE)? How should I treat non-mortgage debt (for example, student loans, auto loans, etc.) Yes. If Net Rental Income is not entered in VI R, DU will calculate it using the following formula: Gross rental income — 75% = net rental income The lender may find it necessary to obtain additional year(s) of individual and/or business tax returns to support the underwriting decision. Refer to Lender Letter LL-2020-03, Impact of COVID-19 on Originations for details. Browse our online resources, learn at your own pace, and discover Fannie Mae learning tools. When the current level is less than the calculated amount, the lender must adjust the income downward to reflect the current level of stable income. The year-to-date income amount being used will account for a decline in income when determining the amount of income to be used for the trending analysis and when determining the amount to be used for qualifying purposes. Also, note that loans in forbearance due to COVID-19 are not subject to the disaster-related forbearance policies in A2-3.2-02, Enforcement Relief for Breaches of Certain Representations and Warranties Related to Underwriting and Eligibility. To enroll, contact the state’s low-Income list administrator at 866-454-8387. The DRN offers support from HUD-approved housing counselors, such as a personalized recovery assessment and action plan, financial coaching and budgeting, and ongoing check-ins. The lender must continue to use the required level of tax return documentation to calculate self-employment income. never self-employed income for Fannie Mae or Freddie Mac? Is it acceptable to follow DU messaging that permits only the most recent year individual and business tax returns? Lease agreements do not need to meet the Age of Documentation requirements. We are releasing information to our customers as quickly as possible and will update and republish these letters as new guidance becomes available. Fannie Mae, along with our lending and servicing partners, is committed to ensuring assistance is available to homeowners in need. Remaining focused on our mission to provide liquidity to the market. The worksheets are: Rental Income Worksheet – Principal Residence, 2– to 4–unit Property , Rental Income Calculation Worksheets. For best results, pose your search like a question. Income Guidance Related to COVID-19. If rental income is not used to qualify the borrower, the requirements of Chapter 5306.1 do not apply. ... Fannie Mae COVID-19 Updates Fannie Mae LL2020-03 updated from original issuance. Click below to access COVID-related FAQs, Lender Letters and other resources: Do Fannie Mae’s existing disaster policies in the Selling Guide and the Servicing Guide apply to the COVID-19 pandemic? Does the lender need to consider a Paycheck Protection Program (PPP) loan when analyzing a self-employed borrower? Lenders should continue to obtain the most recent year’s tax return filed by the borrower as indicated in B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns. A verification of the income directly from the employer or the Work Number database. version of a page. The flexibilities were set to expire on July 31, 2020. Lenders must continue to analyze the impact of the pandemic on the business income used in qualifying as outlined in LL 2020-03. The City of DeSoto is currently offering two grant programs to provide financial assistance to eligible DeSoto residents and businesses affected by COVID-19. the missed payments are resolved by the responsible party (not the borrower) prior to closing of the new mortgage loan; the responsible party had been making payments on the student loan for at least nine months prior to the automatic forbearance; the lender provides borrower documentation evidencing the student loan is in a COVID-related automatic forbearance, and any missed payments have been paid; and. Lender Letter 2020-03 requires certain additional self-employment income documentation for all loan applications taken on or after Jun. In addition to now requiring three business depository account statements, we have updated the language to provide additional clarity by requiring the review of the depository account statements to support the level of business revenue reported in the current YTD profit and loss statement. Fannie Mae Provides Assistance to Help Renters Impacted by COVID-19 Stay in Their Apartments. Do the temporary requirements for self-employed income announced in Lender Letter 2020-03 apply to the High Loan-to-Value Refinance Option? currently in forbearance or deferment? The PPP is a loan issued by Small Business Administration lenders under the CARES Act. No. COVID-19 (Coronavirus) has affected millions of Americans, through the loss of a job or income, or illness. Their call center is open 24/7. A hard refresh will clear the browsers cache for a specific page and force the most recent No. For example, if an employer lowers a borrower’s base salary, the lender must use the lower amount for qualifying. The Fannie Mae Learning Resource Center offers a wide range of materials to help you do business with Fannie Mae. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. COVID-19 UPDATE: Find out how Fannie Mae is responding. Homeowners and renters who have been financially impacted by COVID-19 or natural disaster can also download our app to find relief options and resources on the go. If the lender determines that the business has been adversely impacted and the amount of income calculated following standard 1084 methodology must be adjusted, rep and warrant relief does not apply since the lender must make manual adjustments to the output of the tool. No. The lender must continue to consider expenses reported on the profit and loss statement when assessing the impact of COVID-19 on the business. Fannie Mae's Disaster Response Network has published a guide for renters affected by the coronavirus (COVID-19). We encourage residents whose employment or income are impacted by COVID-19 to seek available assistance as soon as possible," said Malloy Evans, Senior Vice President and Single-Family Chief Credit Officer, Fannie Mae. As reflected in LL-2020-03, self-employed borrowers must provide either a 2020 audited year to date Profit and Loss Statement OR a 2020 unaudited year to date Profit and Loss Statement along with three months business depository account statements. New Resource is Part of Broader Effort to Help People Remain in Their Homes. Our Customer Support teams are here to help you — please contact your Account Team if you need assistance. These FAQs provide additional information on the temporary policies. We are releasing information to our customers as quickly as possible and will update and republish these letters as new guidance becomes available. In no instance may income be averaged over the period of declination. See LL-2020-03 for details. We are allowing certain documentation flexibilities due to the unique circumstances resulting from the COVID-19 pandemic to address the issue lenders have raised due to disruption of employer operations and their inability to be reached by phone. The new mandate date for the use of the redesigned URLA and AUS specifications is Mar. Under the mortgage assistance program, the city will use $6.1 million in federal grants and local funds to finance rent and mortgage payments for low to moderate income residents. See Lender Letter LL-2020-03. Selling, Securitizing, and Delivering Loans, Research Our digital library includes learning modules, videos, frequently asked questions, demos, job aids, guides, and more. We will continue to update this page with the latest resources and information, so please check back often. Refer to B3-3.1-01, General Income Information for additional details. In response to the COVID-19 national emergency, Fannie Mae and Freddie Mac have provided temporary guidance to lenders on several policy areas that support selling mortgage originations. Execution, Learning If rental income is not used to qualify the borrower, the requirements of Chapter 5306.1 do not apply. If you have additional questions, Fannie Mae customers can visit Ask Poli to get Learn More See Frequently Asked Questions about Enterprise assistance options for homeowners and renters impacted by COVID-19 or Information for Tenants in Rental Properties With a Fannie Mae or Freddie Mac Mortgage. WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) wants to help ensure families who are renting in multifamily properties are able … In light of the federal income tax filing deadline extension to Jul. No. 10-Day Pre-Closing Verification (10-day PCV) A circle with a colored border representing one's progress through a lesson. There are no changes for loans that receive self-employment income validation through the DU validation service. For single-closing construction-to-permanent mortgages with loan applications dated during the timeframe covered in LL-2020-03, unless the loan meets the requirements for the extended 18 month timeframe permitted in the Selling Guide, the 60-day age of income and asset document requirements stated in the Lender Letter apply at both the time of the original closing date of the construction loan and the time of conversion to permanent financing. See B3-3.1-01, General Income Information; Continuity of Income. As a reminder, loans with applications on or after Aug. 1, 2020 are required to comply with the allowable age of federal income tax returns contained in Selling Guide B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns. Yes, however, lenders should apply additional due diligence to capital gains and interest and dividend income since it is calculated using a historical view which may not be sustainable given current market volatility. 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