Effective with loan applications on or after the weekend of April 17, Fannie Mae will enhance DU Refi Plus to provide consistency with their other popular refinance program, Refi Plus. Presently, DU Refi Plus does not permit a borrower to be removed from a mortgage loan, while Refi Plus does in circumstances involving death or divorce. Updates to both programs will be expanded to permit the removal of borrowers for any reason, not simply involving circumstances of death or divorce. The updates to DU Refi Plus will not only provide consistency between the two programs, but it will also expand eligibility for a number of borrowers.
Other updated features to DU Refi Plus include:
• Remaining borrowers must exhibit proof of making the monthly mortgage payment from their own funds for the previous 12 months
• Borrower being removed from the loan application must also be removed from the deed
• If a borrower is removed from the loan application due to death, the 12-month payment history will not be required
Additionally, the enhancements to DU Refi Plus will no longer eliminate borrower eligibility for the program if the Social Security Number does not match the mortgage loan being paid off. Previously, such instances would disqualify borrowers from proceeding with their refinance through DU Refi Plus. Now, however, as long as the borrowers can provide acceptable documentation that they are one and the same, DU Refi Plus will remain a viable option.
The latest enhancements to DU Refi Plus will potentially save a mortgage rate that may have been previously locked at a lower rate than current market conditions.
Robert Hyder
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