The information to follow is to answer the questions of
how this program works. To get accurate information for your specific home refinance options,
PLEASE CONTACT RHONDA PULVER NOW.
There is a lot to these programs, and Rhonda can provide up-to-date information regarding guidelines to
get your loan approved and closed.

Details of the Fannie Mae Refinance Plan
2009 Stimulus Package

See Resources section below for our new Refi Plus Options Fact Sheet, plus an updated Refi Plus Options Matrix and updated FAQs.

A critical part of Fannie Mae's role in the Making Home Affordable^SM Program is Home Affordable Refinance, available for refinances of existing Fannie Mae loans only. The goal of the refinance effort, as announced by the President, is "to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices." The expectation is that refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product.

Home Affordable Refinance provides two Refi Plus™ options for Fannie Mae lenders to provide Fannie Mae to Fannie Mae refinance solutions to eligible borrowers: 1) Refi Plus, which requires manual underwriting, and 2) DU Refi Plus™ for loans underwritten through Desktop Underwriter® (DU®).

Highlights

Expanded opportunities for Fannie Mae to Fannie Mae refinances through Refi Plus (manual underwriting) and DU Refi Plus

A solution for borrowers with LTVs above 80 percent who currently may not be able to refinance because of existing MI coverage requirements
LTVs up to 105 percent on the new loan and additional underwriting flexibilities

See Announcements 09-04 and 09-13, the FAQs document, and other resources provided via the links below for details on Fannie Mae's refinance effort.

Flexible MI Requirements to Assist Borrowers with Home Price Declines

Fannie Mae's regulator, the Federal Housing Finance Agency (FHFA), has authorized us to provide refinancing opportunities for loans we currently hold or have guaranteed with current LTVs up to 105 percent, with specific flexibility regarding MI coverage for loans with LTVs above 80 percent.

The following general guidelines apply:

For existing loans with original LTV ratios at or below 80 percent and no existing MI coverage, the new refinanced loan does not require MI coverage.
For existing loans with original LTV ratios over 80 percent that currently have MI coverage in force, the new refinance requires the level of insurance coverage in force on the existing loan or our standard level of insurance coverage. The lender is encouraged to use its best efforts to obtain MI coverage that provides the lowest cost option available to the borrower.
For existing loans with original LTV ratios over 80 percent that do not have MI currently in force due to prior cancellation or termination in accordance with the Selling Guide or the Servicing Guide, the new refinance does not require MI coverage.

See FHFA's Statement on Fannie Mae and Freddie Mac Refinance Initiatives available at the link below for details on this new authority.

Refi Plus (Manual Underwriting)

Refi Plus simplifies the process of refinancing loans that are already in a lender's servicing portfolio. This product supports the new 105 percent maximum LTV and MI flexibilities for LTVs over 80 percent.

DU Refi Plus

DU Refi Plus provides increased efficiencies for the origination and underwriting of Fannie Mae to Fannie Mae limited cash-out refinance transactions in DU. Eligible loans identified in DU receive increased underwriting flexibilities, including expanded eligibility criteria and DU minimum documentation requirements.

The DU Version 7.1 April Update release and May Update release will implement these underwriting flexibilities. Release Notes and FAQs for the May Update release (implementing the weekend of May 2, 2009) and updated Release Notes for the April Update release are now available. See the DU Release Notes page on eFannieMae.com for details (available at the link below).