July 11, 2022

Bulletin 2022-052 Fannie Mae and Freddie Mac Update of Area Median Income Limits

Bulletin 2022-052 Fannie Mae and Freddie Mac Update of Area Median Income Limits

Newrez LLC "Newrez" Approved Correspondent Clients: Newrez has updated the Area Median Income Limits for 2022 provided by Federal Housing Finance Agency (FHFA), the regulator of Fannie Mae and Freddie Mac.

 

Fannie Mae

 

On June 24, 2022, the 2022 Area Median Income (AMI) limits were implemented in Desktop Underwriter (DU) and published on the Fannie Mae website: Fannie Mae Area Median Incomes 2022. These AMIs are used in determining borrower eligibility for HomeReady and RefiNow transactions.

 

DU will apply the 2022 limits to new DU loan casefiles created on or after June 24, 2022. Loan casefiles created prior to June 24, 2022, will continue to use the 2021 limits.

 

Note: the AMI Lookup tool will be updated with the 2022 limits at the end of July 2022.

Freddie Mac

Effective June 5, 2022, Loan Product Advisor was updated with the 2022 Area Median Income Limits. The Home Possible Income & Property Eligibility tool and the Refi Possible Income & Property Eligibility tool were updated June 2, 2022, to reflect the 2022 AMI limits. 

 

As a reminder, the AMI limits apply as follows:

 

  • If the subject property is located in a county where the AMI has declined and the loan was submitted to LPA before June 5, 2022, LPA will apply the higher 2021 AMI. This means the loan will remain eligible if there are no changes in the borrower’s circumstance, no changes in the property condition and the loan was originally an income-eligible Home Possible mortgage.
  • If the subject property is located in a county where the AMI has increased and the loan was submitted to LPA prior to June 5, 2022, LPA will apply the higher 2022 AMI in determining income eligibility for Home Possible or Refi Possible mortgages.

 

Loan Product Advisor will apply the AMI limits for Home Possible and Refi Possible mortgages as follows:

 

IF the loan is submitted as Home Possible on or after June 5, 2022…

THEN the following income limits are applied…

For the following resubmissions:

  • The last submission before the effective date was also a Home Possible Mortgage, and
  • The income limits were met.

The better of the following income limits:

  • 2021 AMI limits at 80% of the AMI

            OR

  • 2022 AMI limits at 80% of the AMI

For the following submissions:

  • The loan is submitted for the first time,
  • The Key Number cannot be identified, or
  • The last submission before the effective date was not submitted as Home Possible and /or did not meet the income eligibility limits.

2022 AMI limits at 80% of the AMI.

Loan Product Advisor Determination of Refi Possible Eligibility

IF the loan is submitted or resubmitted as a Refi Possible Mortgage on and after June 5, 2022.

THEN the 2022 AMI limits apply at 100% of the AMI.