Applying the Re-underwriting Criteria
The following steps are required if the borrower discloses or the lender discovers additional debt(s) or reduced income after the underwriting decision was made up to and concurrent with loan closing:
|1||The lender must document the additional debt(s) and reduced income in accordance with B3-6-01, General Information on Liabilities or B3-3, Income Assessment, as applicable.
Note: The lender is not required to obtain a new credit report to verify the additional debt(s). However, if the lender chooses to obtain a new credit report after the initial underwriting decision was made, the loan must be re-underwritten.
|2||If there is new subordinate debt on the subject property, the mortgage loan must be re-underwritten.|
|3||The lender must recalculate the DTI ratio. For DU loan casefiles, the DTI ratio should be recalculated outside of DU.|
|5||The final loan application signed by the borrower must include all income and debts verified, disclosed, or identified during the mortgage process.|
|6||Upon delivery to Fannie Mae, the lender must deliver the qualifying monthly income and expense amounts that are on the final loan application. See C1-2-02, Loan Data and Documentation Delivery Requirements.|
For additional information about DU resubmission tolerances, see B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report.
For more information see B3-6-02, Debt-to-Income Ratios.