These recommendations do not take into consideration any additional credit risk or other factors that might be associated with the reason the loan is ineligible for delivery to Fannie Mae. The lender must determine if the reason for the ineligibility creates an additional layering of credit risk that should be considered as the lender makes the underwriting decision.
The following table provides further information about these recommendations.
|Eligible for Fannie Mae’s limited waiver of certain mortgage eligibility and underwriting representations and warranties?||No (see A2-2.1-04, Limited Waiver and Enforcement Relief of Representations and Warranties for Mortgages Submitted to DU)|
|Satisfies Fannie Mae’s credit risk standards/assessment?||Yes, assuming that there is no additional credit risk associated with the eligibility criteria that are not satisfied|
|Satisfies Fannie Mae’s mortgage eligibility criteria?||No|
|Eligible for delivery to Fannie Mae?||
No, unless the lender either resolves the issue that resulted in the ineligibility, or has a negotiated contract that specifically permits delivery of the mortgage (also stated as a negotiated variance in its Master Agreement that covers the ineligible condition specific to the loan transaction).
The table below provides references to the Announcements that have been issued that are related to this topic.