AC-002 Important Agency Updates
NOTICE TO ALL CUSTOMERS
Important Agency Updates
FLCBank provides customers with updates from the agencies on different topics as follows:
Fannie Mae
I DU Update – Version 12.0: Fannie Mae implemented DU Version 12.0 the weekend of January 11, 2025. The changes in this release apply for new loans submitted or resubmitted to DU on or after January 11, 2025. The updates include the following:
- Revised recommendation for certain significant derogatory credit events: When it does not appear that a borrower has met the applicable waiting period requirements for a foreclosure or bankruptcy, DU Version 12.0 will issue an Ineligible recommendation instead of a Refer with Caution recommendation. Note that no changes are being made to the waiting periods required for the significant derogatory credit events. As a reminder, FLCBank requires a DU Approve/Eligible recommendation on all Fannie Mae agency loans.
- Expands the number of borrowers with limited or no credit that can be evaluated by DU: Currently when one borrower on the loan application has no credit score and another borrower has a credit score, only certain transactions are permitted (i.e. 1-unit, Principal Residence). These transactions will no longer be subject to limitations on loan purpose or occupancy and will now be subject to standard eligibility guidelines.
- DU Value Acceptance (appraisal waivers) LTV Ratio Increase: The LTV ratios for purchase transaction of a 1-unit primary residence of second home has increased from 80% to 90%.
Note that FLCBank does not accept loans where DU issues a Value Acceptance + Property Data offer, a full appraisal is required unless the loan is eligible for the value acceptance (appraisal waiver).