Virginia Housing has recently learned that a change Fannie Mae implemented into Desktop Underwriter (DU) is mistakenly causing the Conventional No MI (Risk Share) loans to receive an Out of Scope. Fannie Mae expects the correction to be included in a DU release in December 2020. We will communicate any additional information at that time. Until resolution we are able to offer the following options to our business partners:
1. These loans may switch to the Virginia Housing Conventional program (HFA Preferred; program name known as Fannie Mae Reduced MI until September 9, 2020) meeting all Virginia Housing Conventional/Fannie Mae Reduced MI program guidelines, or,
2. The Virginia Housing Conventional No MI loans (HFA Preferred Risk Share, program name known as Fannie Mae No MI until September 9, 2020) may be temporarily manually underwritten.Click here for procedures Originating Lenders must follow
We appreciate your understanding and cooperation until Fannie Mae corrects DU.
Questions?Email the Loan Program Underwriting Manager or Underwriting@VirginiaHousing.com