FANNIE MAE DU 10.3 GOING INTO EFFECT THIS WEEKEND
FANNIE MAE DU 10.3 GOING INTO EFFECT THIS WEEKEND.
Here are the changes:
This coming weekend changes to DU will go into effect…. What are the Changes? There are only 2 changes that will affect the Findings…..
- DU 10.3 will require 6 months reserves on cash out refinances if the DTI exceeds 45%
- DU 10.3 Housing Expense Ratio- Loans for a borrower with a lower housing expense ratio will be considered a lower risk, while those where the housing expense ratio higher will be considered higher risk. FNMA states that research has shown that borrowers whose monthly expense is composed primarily of their housing expense may find it more difficult to pay their housing expense when experiencing an event that would cause financial distress, such as the loss of a job.
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