re: Flood Bill Primer; Cash Out Refi Trends; Fairway Independent and ValueQuest Do Some Good

Bill Eggleston — Mon, 12 Nov 2012 19:09:22 GMT

[In October DU 9.0 was rolled out. I don't have the attention span or mental capacity to be an underwriter, but as I understand it (and this question comes up once in a while) , borrowers have no more freeloading on the divorce and child support, as it is going in their DTI! "Court assigned debt" is now included by Fannie Mae in a borrower's liabilities. There is no exclusion of any court assigned debts, co-signed debt, or mortgage assumptions for Fannie. As one person wrote, "Even if they have a divorce decree where the court has transferred the liability, it is a 'no go' under Fannie. Originators should go with LP (if the loan balance fits) or perhaps a jumbo program."] Rob - I cannot find this anywhere in Fannie's guides or any of the DU release notes. The last update in this regard was in 2011 and it stated you could ignore court-assigned debt. I know you are not an underwriter :) Maybe whoever sent this to you could supply where he/she got the info, as no underwriter (myself included) here at this bank has seen this update.