FNMA DU REFI PLUS!!!

#5352
(loan must be currently owned by FNMA)
For loans not serviced by Flagstar, a copy of the HUD1 closing statement and appraisal must be provided from the original loan to determine the loan to value. (This is our only way to confirm
whether MI was on the deal or not.).

Rate andLimit Refi of loan up to 105% of value with potentially no MI!! No CLTV Term No CLTV Limit Both Conforming and Conforming Jumbo (FNMA High Balance) are eligible Both Conforming and Conforming Jumbo (FNMA High Balance) are eligible nd Owner Occupied, Home and and Investment properties are OwnerOccupied, 2 2nd Home Investment properties are all eligibleall eligible No minimum FICO requirement No minimum FICO requirement

DU Response Required
Must run through DU - Approve and EA levels I through III responses are all eligible Please review DU response carefully.

DU Response must include the following message;

This loan casefile was underwritten according to the DU Refi Plus expanded eligibility guidelines offered on certain limited cash-out refinance loan casefiles where the borrowers existing loan is identified by DU as a Fannie Mae loan. Special Feature Code 147 must be offered. DU response may include; DU Refi Plus Property Fieldwork Waiver - $75 fee will be charged. Special Feature Code 807 must be offered. (If you receive the above offer, no appraisal is required. A $75 hit will be added to the Admin fee.) If DU does not offer Property Inspection Waiver PIW, a Full appraisal is required

Income is determined from one paystub for wage earners or most recent year tax return for self-employed borrowers You can add a borrower to the transaction providing all the original borrowers are retained on the new loan Payoff of seconds not allowed (even purchase money seconds is not allowed.) Loans with existing secondary financing must re-subordinate the 2nd. No CLTV Limit
Prepare in advance. Do not forward lock. Subordination arrangements are taking a min of 45 days

Borrower will NOT qualify for this program if there was a BK within the last 48 months No limit on number of properties owned for either FNMA or Flagstar

Condo
Condo Cert required. Check Flagstars web site for Condo approval first. If approved on our list, youre OK. If not on our list and Flagstar is not the current servicer, Flagstar must confirm project is eligible. (If the condo was eligible at the time of the original refinance, it will still qualify for the program, even if the condo is no longer listed as eligible. Unless additional information on the project has been disclosed since the loan had closed originally.) example: project actually operates as a condotel and was not originally disclosed as such previously.

Impounds and Closing Costs

If existing loan is serviced by Flagstar , Impound/Escrow may be credited towards payoff of existing loan. Loan amount is capped at the unpaid principal balance plus prepaids and closing costs (similar to VA IRRRL). They will condition for the payoff and late fees and payoff fee etc cannot be included in the loan amount. If MI exists, financed closing costs are limited and vary depending upon the existing MI company.

Submission Tips
Put assets in the 1003 to cover any funds to close VOE to verify employment or to verify the business is still operating is required. If you are not getting the option for the DU Refi Plus program check the registration date. It needs to be after 4/7/09 in order for it to come up. Also try setting the close of escrow date 40 days out, like end of May, for some reason the u/w say this helps pull the option.

Existing loan must be currently owned by FNMA-find out by using the Lookup toolhttp://loanlookup.fanniemae.com/loanlookup/ (MAKE SURE YOU USE THE STREET ABBREVIATION) Better yet, visit the United States postal service web site for the actual correct address format. http://zip4.usps.com/zip4/welcome.jsp

MI
Loans that did not have Mortgage Insurance originally will not require Mortgage Insurance now regardless of new LTV(up to 105%). Loans that had Mortgage Insurance originally, must be currently serviced by Flagstar Bank.
>Flagstar Bank will handle re-issue of MI from same provider. (as long as MI coverage levels remain the same.) Please check doc # 6102 under Sellers Guide under UW guidelines for further MI company restrictions such as score, DTI and coverage.

There is no minimum seasoning on the existing loan (Unless MI exists on the deal3 months seasoning required if MI exists on the loan.

However, please be aware that an Early Loan Payoff Penalty ELP will be charge back on all loans that pay off within 120 days. Please see doc #4617 for the details.

Price Quote Tip:

Pricing structure may be more favorable than standard products in many cases. Pricing is available at your finger tips via Price quote in the Flagstar web site!

For loans that did not originally have MI but are now over 80% you must populate the MI option at the bottom of the screen to MI NOT REQUIRED
Turn times are posted on the front page of the web site.

Just a reminder: Turn Times are Bulging. DON'T GET CAUGHT OFF GUARD! reminder: Turn Times are Bulging.

DU REFI plus is not eligible for Check and Close nor is it eligible for Delegated.
You are busy...We are busy...It's a good thing! Simple solution be prepared and prepare your borrowers for longer turn times.

Please call with any questions Mary Shaver 619-275-4565 Mary.shaver@flagstar.com Underwriting Support: wcoc_uw@flagstar.com Customer Support: 866-945-9872