AC-013 Various Product Announcements – VA Funding Fee Rate Update
Various Product Announcements including VA Funding Fee Rate Update
FLCBank is providing customers with a number of important credit updates as follows:
- Fannie Mae Updated Terms
As part of Fannie Mae’s “Valuation Modernization” efforts, the term “Appraisal Waiver” has been updated to the new term “Value Acceptance” and all references in Fannie Mae’s website and the selling guide now reflects this new term. Please note that the DU appraisal waiver messages will be updated to reflect the new term “value acceptance (appraisal waiver)” on new loans submitted to DU on or after April 15th, 2023.
- DU for Government loans
Starting April 15th, DU for Government loans will reflect several updates and updated DU FHA version 4.1 and VA version 3.1 which will apply to new loans submitted in DU starting April 15th and are described below:
- FHA Required Investment Calculation Change and Other FHA Updates
At the direction of FHA, payoffs will no longer be included in the Required Investment Calculation that is sent to the FHA TOTAL scorecard on refinance transactions. The determination of this amount will be taken from Line E. Credit Cards and Other Debts Paid Off in section L4 of DU. For any payoffs that are to be included in the transaction, lenders should ensure that the amount for that field is separated from Line D For Refinance: Balance of Mortgage Loans on the Property to be paid off in the Transaction, in section L4 on all refinance transactions.