 Freddie Mac 80% AMI Income Limits Changes
Freddie Mac 80% Area Median Income (AMI) qualifying income limits for all Minnesota counties are changing, which will impact loan pricing, MI costs, and UPMI product availability. Details can be found in the FHLMC 2022 Income Limits Bulletin 2022-11.
Freddie Mac Implementation Timing:
For automated underwritten loans the more generous 2022 limits are effective for LPA run date or resubmitted to LPA on/after June 5 2022. For loans run though LPA prior to June 5, 2022 and over 80% AMI consider rerunning through LPA to take advantage of the higher income limits.
Manually underwritten loans use the 2022 limits for any loans with application received dates (i.e. initial URLA date) on/after June 5, 2022. IMPORTANT: The Minnesota Housing loan commitment system cannot determine whether the borrower is under or over the 80% AMI limit.
Important: The system may not automatically generate the correct rate for your borrower if:
- Their loan qualifying income is between the old and new income limits
- And/or if the income entered into the system is not the underwriter's final qualifying income.
How can I make sure my conventional borrowers get the correct rate and avoid errors?
At Rate Lock:
- Confirm the loan qualifying income entered into the Minnesota Housing loan commitment system is correct.
- Use the Conventional Product Income Limit document to determine whether your borrower is above or below 80% AMI.
- Compare the rate the system is generating to the rates on the Minnesota Housing rate sheet.
- If the system did not generate the correct rate, contact the Partner Solutions Team.
Prior to Closing:
- Enter the underwriter's final loan qualifying income in the Minnesota Housing loan commitment system.
- Use the Conventional Income Limits document to determine whether your borrower is above or below 80% AMI.
- Contact the Partner Solutions Team at mnhousing.solution@state.mn.us if:
- The system did not generate the correct rate, or
- The borrower's qualifying income is between the old and new income limits and you are unsure whether the rate is correct.
Fannie Mae has not issued new guidance in regard to their Income Limits.
It is anticipated that Fannie Mae will issue their guidance soon. At that time we will schedule a critical training and provide additional information.
Congratulations to the 2021 Top Producing Loan Officers!
Minnesota Housing is pleased to name the Top Producing Loan Officers for Single Family homeownership program loan production volume achieved during 2021. Last year, our participating lenders originated over 5,800 home mortgage loans for more than $1.29 billion statewide, with 39% of those loans serving Black, Indigenous and people of color (BIPOC). The 144 loan officers we recognized this time are a substantial part of that achievement. These loan officers are identified as Top Producers on the lender search tool on our website and may use items made available in an achievement level marketing kit.
Learn more about the Minnesota Housing Top Producing Loan Officer Program or contact your Business Relations Representative if you would like additional information.
The Minnesota Housing Top Producing Loan Officer Program recognizes individual loan officers based solely on the number of Minnesota Housing first-time homebuyer loans produced in one of the designated regions for the program on an annual basis. Designations are not intended as a formal referral or preference for individual loan officers and no financial or other measurable benefit is intended to be granted to loan officers on a preferential basis.
Reminder: Limited Operations on Juneteenth
Minnesota Housing will have limited operations on Monday, June 20, 2022 in honor of Juneteenth. Minnesota Housing’s loan commitment system will be unavailable for new loan locks on Monday, June 20. Minnesota Housing will extend loans expiring on June 20, 2022 until June 21, 2022 if needed.
If you need assistance, please consult the Minnesota Housing website (lenders page or consumer page) or contact the Partner Solutions Team at mnhousing.solution@state.mn.us or 651.296.8215. A Partner Solutions Team member will connect with you on June 21, 2022.
Join Us at an Upcoming Event
We partner with lenders and real estate professionals at community events throughout the state. Contact El Karnwie-Tuah to learn more about partnering with us at these or other upcoming events, or come and check out our booth!
Questions?
You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 8:00 a.m. and 5:00 p.m. on business days.
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