Fannie Mae Provides Additional Underwriting Flexibility for Mortgage Loans Impacted by Hurricane Harvey

Fannie Mae issued Lender Letter LL-2017-04, providing additional underwriting flexibility for mortgage loans impacted by Hurricane Harvey. In accordance with the Lender Letter, Fannie Mae is providing lenders with additional flexibility with respect to age of credit and appraisal documentation for mortgage loans impacted by Hurricane Harvey. Fannie Mae also requires lenders to take prudent and reasonable actions to determine whether the condition of a property has materially changed since the effective date of the appraisal report, including determining whether an inspection and/or new appraisal is necessary. In addition, the Lender Letter announces that Fannie Mae will reimburse both lenders and servicers for the costs associated with inspecting properties impacted by Hurricane Harvey, and that Desktop Underwriter will be updated to incorporate the ZIP codes included in the FEMA-declared disaster areas for Hurricane Harvey (these ZIP codes will be excluded from consideration for a property inspection waiver). The Lender Letter went into effect August 31, 2017.

Click here to view the Fannie Mae Lender Letter