One of the most common loan defects remains “incorrect income calculation — rental income/loss.”

Desktop Underwriter will now automatically populate Underwriting Findings with information from Condo Project Manager.

Fannie seller/servicers must now have information security programs that meet NIST or ISO standards.

Lenders will now be able to use a single verification report to validate income, employment, assets, positive rent payment and cash flow history. However, the report must have at least 12 months of data.

As long as it has at least 12 months of data, a single asset verification report will now be sufficient to validate a borrower's income, employment, assets, and positive rent payment and cash flow history.

Counterintuitively, the bi-merge will increase the number of credit pulls necessary to complete the average mortgage loan application. Consumers will ultimately pay for those extra pulls.

Both Fannie Mae and Freddie Mac have eased the rules that limit the use of rental income to qualify for a mortgage.

Fannie’s decision to lower the downpayment requirement for loans on two- to four-unit multifamily properties should boost investment in this key source of affordable housing.

Implementation of the new AMI limits took place this week in Loan Product Advisor and will take place next week in Desktop Underwriter.

The mortgage giant has introduced new valuation options as it moves away from the policy that “appraisal is a default requirement.”