I am interested in thoughts and opinions on this new DU REFI Plus Fannie Mae initiative .. It looks to me like a Conventional Streamline.

I was unable to post the full announcement sent out by one of my lenders on FEB 4th, but I am sure most LO's on the sight are aware of it already as it came out in a formal announcement and is supposed to start on April 4th... I have to admit I started to salivate before remembering that things that are two good to be true usually are...  I was able find a short post on Fannie mae's website, but it really doesn't give the full overview of the program... I hope there are atleast a few members out theres that are aware and can give there insight..

Here are my basic questions

1. Will brokers be able to refinance these mortgages, or is this only going to be available directly thru the bank the homeowner currently holds there mortgage.  I can imagine the government is going to allow mortgage brokers the opportunity to refi and make money on all of these loans?

2. Are they going to increase the LTV requirements?  I am thinking they are going to have to??  If so are investors going to buy these High LTV's Loans?

I just dont understand exactly how this will work.. then of course are we going to be able to orginate these loans?

Here is the short post I was able to find..

tatement by Brian Faith, Managing Director, Communications on DU Refi Plus Fannie Mae is building on its current efforts to support the market and provide additional liquidity to the housing finance system through expanded refinance options. To allow more borrowers to take advantage of today's historically low interest rates and help the lending community break the logjam in mortgage refinancing, the company is extending its refinance offerings through DU Refi Plus™. DU Refi Plus™ will streamline the underwriting of refinance transactions for potentially millions of current mortgage holders. Under DU Refi Plus™, the company will be able to identify an existing Fannie Mae loan and review the performance history. This will allow lenders, regardless of the servicer, to enjoy expanded refinancing business opportunities and streamlined processing. The company will also implement underwriting flexibilities for company-owned, refinanced loans, including expanded eligibility criteria. In addition, we will expedite the refinancing process for Fannie Mae-owned loans by, under certain conditions, leveraging our automated risk assessment capabilities to validate the current market values in lieu of traditional appraisal or property inspection requirements.

Thanks for sharing this post. I think only time will tell how this is rolled out to the general public.  And I think you're right, it seems the broker community is being squeezed out and I worry they don't roll it out to everyone.

We'll see....