Help w/ DU Refi Plus- Desperate!

I cannot figure out why this loan is not eligible for DU Refi plus!  Fico 780, SFR, current mortgage with a FANNIE MAE lender, no late payments, DTI 33%- Borrrower refinanced his loan 1 year ago at 5.25% on a conventional 30 year fixed with a LTV of 78% at the time.  No current PMI.  The ONLY negative is that the place has lost value like everywhere and now the LTV is about 94%. 

I called fannie mae and no one could tell me WHY this case was ineligible for DU Refi Plus.  They literally said "Some loans just don't qualify" for no identifying reason.  I thought the point of REfi Plus was to accomodate borrowers who had lost equity. 

Is there anything I am missing? 

Thanks

Matt Murphy

My company isnt even offering the DU plus product if that makes you feel any better

I'm sorry to hear that- it just seems like Fannie Mae is finding away to reject certain loans even if they fit their perameters. 

I actually have 2 other loans that are ineligible for DU Plus and I cannot figure out why.

The employees at D.O. couldn't give me an answer.

Hi Matt-

I ran into a similar problem yesterday and after scouring Fannie's website for guidelines(as you know, it doesn't tell you why it doesn't meet guidelines;just that it doesn't) came across a footnote that the "cash back" tolerance is now $250.00. It recommended that the payoff amount on the details of the transaction match exactly with the credit report and 1003. Mine was off by $300.00(borrower's estimate on the 1003) when I corrected it my findings came back eligible for DU refi plus....with an appraisal waiver (bonus)!!

Hope that is what is impeding your approval...good luck!

Suzanne

Do not pad your payoffs.

Make sure the address you have is exactly as it appears on the note (eg st versus street, NE versus Northeast, note says 34th ave versus 34 the ave sw, etc)

Did the original loan have LPMI?

Was the original loan any special program such as those offered to teachers, firemen, etc?

Those are some of the things that will cause it to be ineligible.

Suzanne,

The amount in the details sections does exactly match the credit report.  Thank you though.  It's still not showing eligibility.   Do you happen to have any other suggestions?  No one at the office can figure this one out.

Thanks

Kent,

Thanks for the response.  The Original did not have LPMI and not a teacher/fireman program of any kind.  It is a normal conventional loan- a fannie mae 30 year fixed. 

The name is exactly as it appears on the note. 

Do you have any other suggestions?

Could it have been written to any of Fannie's convetional/conforming DU reduced documentation initiatives that went by brand names like Countrywide's Fast and Easy and the like?  The "stated-income-loan-in-disguise" that was priced like a run-of-the-mill full-doc loan.....  I could be wrong, but I vaguely recall seeing something in 09-04 saying that those were also ineligible.

Juan,

Thanks for the reply, this loan was as basic as you can get.  Completely conforming full doc.  No free and easy crap.  If was 78 LTV at the refi last year.  Could the fact that the rate is only dropping 5/8% be an issue?  It's a bigger loan amount so it was worth it?

Borrower and Co-Borrower have to be the same as the original loan.  If 2 people were on the original loan, you have to have them in the same B/Co-B order.  I don't believe that you can have had any changes in the number of borrowers.

When I say don't pad the payoff, put in the mortgage balance right off of the credit report, not the true payoff.

I even had one address where I put in St and it needed St. to trigger in the system.

Other than that... maybe take it FHA if there is benefit???

I have tried to get 5 files approved on the Refi Plus program and only one has gotten the refi plus approval.  The other 4 got a standard approve/eligible and I have no idea why they didn't get the refi plus code.  Fannie has been no help either.

Kent Mikkola:

I even had one address where I put in St and it needed St. to trigger in the system.

That is interesting.  Fannie made it sound like as long as you used the address that got a "match found" on their site then that address was good.

It sounds like the best course of action is to get a copy of the current note and enter the name(s) and address EXACTLY as they appear on the mortgage and make sure the payoff and schedule of REO has the balance right off the CR.

Here's your problem in a nutshell - you're dealing with the govt. (i.e. the same entity that brought you social security, medicare, medicaid, fnma, fhlmc, gnma, slma, 16th amendment (along with all the others), hvcc, du (fnma), amt, etc. etc. etc. etc. etc.  If you choose to play with pigs, don't complain about the mud on your clothes.

I'm just trying to figure out why this doesn't qualify for DU Plus.  I have tried all trouble shooting tips offered and nothing works.  If I don't try to use DU Plus (offered by the govt. I guess), these deals are dead because of declining values.  Are you suggesting it was stupid to "play with pigs" and I shouldn't have pursued the business to begin with? 

Thanks Kent,

I know I have done this so I'm having a hard time figuring out the issue.  all tips attached to this post were tried

Matthew;

I absolutely wasn't implying that it wasn't wise for you to pursue this program (and apologize if it made you feel that way).  The intention of my post was to try to explain that with any govt. sponsored program you get all sorts of inefficient results and unintended consequences that typically have no solution, and you will most likely get the same answer you have gotten from the DU Refi Plus.  I know that doesn't help you much, and I wish you luck in resolving your problem. 

No problem, and you're right about the ineffeciencies of govt. programs like this.  If it doesn't qualify- fine- I'd just like to know why which is infuriating. 

Thanks though

Try using the whole zip codefor the address, example mine is 73507-1650.

Marge