Selling Guide

Published April 07, 2021

For best results, pose your search like a question.

Guide Resources

For a comprehensive list of resources such as forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

Customers Recommend Ask Poli

AskPoli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Launch Ask Poli  

Download PDF Guide

You can also download the printable 1,200+ page PDF, which include links.

Download Now

B5-7-04, High LTV Refinance Representations and Warranties (08/07/2018)

Introduction

This topic contains information about the representations and warranties for the high LTV refinance option, including:

 

Lender Representations and Warranties

For high LTV refinance loans, lenders are responsible for the standard representations and warranties described in the Selling Guide, with a number of exceptions as noted below.

For all High LTV Refinances

  • If the lender obtains an appraisal for the subject property, the lender is not responsible for the standard representations and warranties related to the marketability and condition of the property as reflected in the property valuation. The lender remains responsible for the appraisal as it pertains to the value.

    • Lenders may deliver loans on properties with a condition rating of C6 and/or a quality rating of Q6 completed on an “as-is” basis. There is no requirement for the appraisal to be completed “subject to” repairs being made.

  • For properties in a project, the lender is not responsible for the standard representations and warranties related to project eligibility. However, the lender must represent and warrant the property is not a condo or co-op hotel or motel, houseboat project, or a timeshare or segmented ownership project.

Loans Underwritten in DU

  • The lender is not responsible for any of the representations and warranties associated with the loan being refinanced.

  • The lender is relieved of the standard underwriting representations and warranties (eligibility, credit history, liabilities, income and asset assessment) with respect to the new mortgage loan if the lender meets all of the following requirements:

  • When a lender exercises an appraisal waiver, Fannie Mae accepts the property value estimate submitted to DU as the market value for the subject property, and the lender is not required to make any representation or warranty as to the value, marketability, or condition of the subject property.

Manually Underwritten Loans

  • The lender is not responsible for any of the representations and warranties associated with the loan being refinanced other than those related to eligibility of the existing loan being refinanced.

  • The lender must represent and warrant that the new loan meets all the requirements of the high LTV refinance option as described in this Guide.

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles


AskPoli

Customers Recommend Ask Poli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Guide Resources

For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.