Bulletin 2024-045 SmartSeries Underwriting Guide Updates

Current Policy

New Policy

Section 24. Investor Experience

Section 24. Investor Experience

First time Investor

• Borrower must currently own a primary residence for at least 12 months prior to the note date of the subject property and must have a current or prior 12-month housing history payment on the primary residence
• Must have a 36-month credit history including a 12-month housing payment history

First time Investor

• Borrower must currently own a primary residence for at least 12 months prior to the note date of the subject property
• Must have a 36-month credit history including a 12-month housing payment history (current or prior)

Section 1A.14 (b) Leasehold Estates 

Added: Note: When warranted, an acceptable Attorney Opinion letter, in addition to the Ground Lease, may be obtained to assist in the review and acceptability of the Ground Lease.

Section 2A.2 Rate and Term Refinance 

Removed: Refinancing of a subsidized loan, including loans subsidized by Habitat for Humanity, U.S. Department of Agriculture, FHA with a recapture or any city/county grant are ineligible.

Section 2A.5 Delayed Financing  

Added: If the source of funds used to acquire the property was an unsecured loan or loan secured by an asset other than the subject property (such as a HELOC secured by another property), the settlement statement for the refinance transaction must reflect that all cash-out proceeds be used to pay off or pay down, as applicable, the loan used to purchase the property. Any payments on the balance remaining from the original loan must be included in the debt-to-income ratio calculation for the refinance transaction.

Note: Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan.

Section 6A.4 (h) Gift Funds

When the funds are not transferred prior to closing, provide the following to the closing agent:

• Copy of cashier’s check;
• Copy of certified check; or
• Wire confirmation

Section 6A.4 (h) Gift Funds

When the funds are not transferred prior to closing, provide the following to the closing agent:

• Copy of cashier’s check;
• Copy of certified check; or
• Wire confirmation; 

Closing Disclosure to reflect receipt of the gift funds

Section 8A.1 (d) Written Verification of Employment (WVOE)

In lieu of standard income documentation, an electronic verification of employment, from the WorkNumber or TruWork can be used as standalone income documentation.

Section 8A.1 (d) Written Verification of Employment (WVOE)

In lieu of standard income documentation, an electronic verification of employment, for example from the WorkNumber or TruWork, can be used as standalone income documentation