 Conventional Loans: 80% AMI Limits for 2022 Implemented in Commitment System August 24
In June we announced the Conventional 80% Area Median Income (AMI) qualifying income limits for all Minnesota counties changed. This impacts loan pricing, Mortgage Insurance costs, and Upfront Paid Mortgage Insurance (UPMI) product availability.
Effective August 24, 2022, Minnesota Housing's commitment system has been updated with the 2022 Conventional AMI limits. The pricing generated in the system will assume loans locked on or after August 24 are eligible to use the 2022 AMI limits.
The Minnesota Housing commitment system may not automatically generate the correct rate for your borrower if:
- The income entered into the commitment system is not the underwriter's final qualifying income, or
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The DU initial run date is before June 24, 2022 for Fannie Mae automatically underwritten loans (2021 AMI limits apply)
- The initial URLA date is before June 5, 2022 for Freddie Mac manually underwritten loans (2021 AMI limits apply), or
- The property is in Sibley County. Contact the Partner Solutions Team to discuss the appropriate income limit for properties in Sibley County.
How can I make sure my conventional borrowers get the correct rate and avoid errors?
For all loans:
- At Rate Lock, confirm the loan qualifying income entered into Minnesota Housing's loan commitment system is correct.
- Prior to closing, enter the underwriter's final loan qualifying income in Minnesota Housing's commitment system.
For older loan applications (as specified above):
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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.
Special Event for Non-CRA Loan Officers
The Homeownership Opportunity Alliance is planning a special event for non-CRA Loan Officers.
An in-person screening of Jim Crow of the North will take place on Tuesday, September 27, from 3:30 p.m. - 5:30 p.m. followed by a discussion with Program Producer Dan Bergin, Mapping Prejudice Project Co-Director Kirsten Delegard, and Federal Reserve Bank of Minneapolis Director of Community Development and Engagement Libby Starling. The event will be held at the University of Minnesota Urban Research Outreach/Engagement Center (UROC) in Minneapolis.
Registration is not required. Please see the flyer for more information.
New Recorded Demo: Interest Credit Closing
We are pleased to announce a new recorded demo showing what to do if a borrower has an interest credit closing to make sure the first payment date on the second mortgage is correct. Click here to view the demo. The link is also available on the Commitments page of our website, along with the other system demos.
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, September 8
- Thursday, October 13
- Thursday, November 10
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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