 Reminder- Critical Lender Update Call: Conventional Income Limits
Please join us for a Critical Lender Update Call on Thursday, July 7 from 9:00 - 10:00 a.m. that will cover Fannie Mae and Freddie Mac’s 80% AMI income limits changes. This update will be important for you to understand what the changes mean for Minnesota Housing loans.
Reminder - Conventional Loans: Fannie Mae & Freddie Mac 80% AMI Income Limits Changes
Conventional 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.
Fannie Mae Implementation Timing:
- Automated underwritten loans: Use the 2022 income limits for loans with DU initial run dates on or after June 24, 2022.
- Manually underwritten loans: Fannie Mae encourages lenders to use the 2022 limits immediately, but lenders are required to use them for loans with application dates (i.e. initial URLA date) on or after August 1, 2022.
Freddie Mac Implementation Timing:
- For automated underwritten loans: Use the more generous 2022 limits for loans with 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 dates (i.e. initial URLA date) on/after June 5, 2022.
IMPORTANT: The Minnesota Housing loan commitment 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 the income entered into the commitment 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.
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Review your DU/LPA findings (or use the Conventional Income Limits document) to determine whether your borrower is above or below 80% AMI.
- Compare the system-generated rate to the rates on the Minnesota Housing rate sheet.
- If the commitment system did not generate the correct rate, contact the Partner Solutions Team at mnhousing.solution@state.mn.us.
Prior to Closing:
- Enter the underwriter's final loan qualifying income in the Minnesota Housing loan commitment system.
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Review your DU/LPA findings (or use the Conventional Income Limits document) to determine whether your borrower is above or below 80% AMI.
- Contact the Partner Solutions Team 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.
Note: The 2022 income limits for Sibley County decreased significantly. Contact the Partner Solutions Team to discuss the appropriate income limit for properties in Sibley County.
Reminder: Tax Service Fee Increase on July 17
As announced in U.S. Bank Home Mortgage’s Seller Guide Update (SEL-2022-021) in May, the Tax Service Fee on first mortgages locked on or after July 17, 2022 is increasing to $84. Our Lock, Fee, and SRP Guide has been updated to reflect the change.
- 1st Mortgage loans locked prior to July 17, 2022: $80 Tax Service Fee
- 1st Mortgage loans locked on or after July, 17, 2022: $84 Tax Service Fee
For more details, see U.S. Banks' most recent reminder in SEL-2022-034
Upcoming Lender Trainings
Join Minnesota Housing for our series of monthly training webinars. The trainings will lay out the basics of our Start Up, Step Up, or Downpayment and Closing Cost Loans, how they work, what eligibility criteria is required and review how to access tools and resources to help you successfully originate loans. These instructor led trainings provide a great opportunity to ask questions. We look forward to partnering with you!
The webinars take place on Thursdays from 9:00 - 10:30 a.m. CST. Please click the links below to register:
Monthly Underwriter Call
Join us for monthly calls to review recent Minnesota Housing updates and important information to help you originate and process our loans. Please click here to register.
When you register, you will be signed up for all sessions in the series but can attend the sessions that work for you. Calls occur on the second Thursday of the month from 9:00 a.m. - 10:00 a.m. CST.
Upcoming Sessions:
- Thursday, July 14
- Thursday, August 11
- Thursday, September 8
eLearning Training Courses
Are you interested in learning more about Minnesota Housing loan programs, requirements, and how they work? The eLearning training courses are a great place to start. These self-paced training modules lay out the basics of the Start Up and Step Up programs, eligibility and income requirements, down payment and closing cost loans, and much more! To view a complete list of courses, visit the Homeownership Training page and select eLearning Courses.
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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