Note: This FAQ comes from the published COVID-19, FAQs on Appraisals.
Does DU identify Fannie Mae-owned loans?
Lender Letter LL-2020-04 specified temporary flexibilities that lenders may apply to limited cash-out refinance transactions when the loan being refinanced is owned by us. To assist lenders in applying these flexibilities, beginning Apr. 11, 2020, DU will issue a new message stating that the borrower's existing loan has been identified by DU as a Fannie Mae loan. This message will be issued on limited cash-out refinance loan casefiles when DU finds an active Fannie Mae first mortgage loan for the subject property address, and also confirms that the Social Security number (SSN) of at least one of the borrowers on the loan casefile matches one of the SSNs on the existing loan.
For more information, refer to the published Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals.