Announcement 2023 - 36

Disaster Policy Update – California

<California Storm and Weather>

Federal Emergency Management Agency (FEMA) announced a Major Disaster for the counties in California listed below due to recent severe storms, flooding, landslides and mudslides. Effective immediately, loans in the following counties are temporarily suspended until further notice.

Reference: FEMA Announcement

We will continue to monitor FEMA announcements and add or remove any additional area as needed.

In response to the potential damage caused by the event listed above, MK Lending requires Disaster Re-inspection for listed areas.

Announcement 2023 - 35

Memorial Day Holiday Hours

Please see below for Memorial Day holiday hours:

• May 26^th, 2023 (Friday): 8:30AM – 5:30PM (Lock & Funding cut-off at 11AM PDT)
• May 29^th, 2023 (Monday): Closed
• We will re-open on May 30^th, 2023 (Tuesday)

Announcement 2023 - 33

FHFA – DTI LLPA Rescinded

MK Lending is aligning with the recent Agency announcements. The announcements are summarized below with a link to the Agency’s full announcement.

Agency: Federal Housing Finance Agency (FHFA)

Effective Date: 5/10/2023

Agency Announcement: FHFA Announces Rescission of Enterprise Upfront Fees Based on Debt-To-Income (DTI) Ratio

Summary: Rescinding the DTI loan-level pricing adjustments (LLPA) from Fannie Mae’s and Freddie Mac’s pricing grid updates in January that was scheduled to take effect on August 1, 2023. 

Announcement 2023 - 32

Disaster Policy Update – California

<California Storm and Weather>

Federal Emergency Management Agency (FEMA) announced a Major Disaster for the counties in California listed below due to recent severe storms, flooding, landslides and mudslides. Effective immediately, loans in the following counties are temporarily suspended until further notice.

Reference: FEMA Announcement

We will continue to monitor FEMA announcements and add or remove any additional area as needed.

In response to the potential damage caused by the event listed above, MK Lending requires Disaster Re-inspection for listed areas.

Announcement 2023 - 31

Fannie Mae SEL-2023-04 Alternatives for Tax Filing Documentation

MK Lending is aligning with the recent Agency announcements. The announcements are summarized below with a link to the agency’s full announcement.

Agency: Fannie Mae

Effective Date: 5/3/2023

Agency Announcement: SEL-2023-04

Summary: To align our policies with recent changes made by the IRS, we will allow alternative documentation for IRS Form 4868 as evidence the borrower has filed an extension for the prior year’s tax returns. We are updating our policy to permit proof of e-filing of IRS Form 4868 or payment confirmation (including the confirmation number) of all or part of the estimated income taxes due to support that the borrower has filed an extension.

Announcement 2023 - 30

Disaster Policy – Florida

Federal Emergency Management Agency (FEMA) announced a Major Disaster for the counties in Florida listed below due to recent severe storms, tornadoes, and flooding. Effective immediately, loans in the following counties are temporarily suspended until further notice.

Reference: FEMA Announcement

We will continue to monitor FEMA announcements and add or remove any additional area as needed.

In response to the potential damage caused by the event listed above, MK Lending requires Disaster Re-inspection for listed areas.

If you have any questions, please contact your Account Executive.

Announcement 2023 - 29

PDF Submission Form No Longer Required

Effective immediately, MK Lending will start utilizing Loan Submission Form section in Additional Information tab. This will allow you to submit a loan faster.

• PDF Loan Submission Sheet is no longer required
• Please complete the Loan Submission Form section (See below sample of TPO portal and Encompass)
• PDF Fee Sheets are still required

For TPO Portal

For Encompass

Announcement 2023 - 28

Manufactured Home Update

 Please see the following update regarding Manufactured Home for Fannie Mae Direct program.

• MK Lending has started accepting Single-Wide Manufactured Home this week. Please see the following details:

1. Fannie Mae Direct program only
2. 1 Unit only
3. Primary only
4. Purchase and Rate & Term Refinance only
5. Cash-out Refinance not allowed
6. Max LTV 80%
7. Min 400 SQFT and 12 FT wide
8. Appraisal: 2 similar comps, 1 comp to be similar configuration

• Manufactured Home price adjustment (LLPA) has been updated for Fannie Mae Direct program as follows:

1. Multi-Wide Manufactured Home price adjustment was updated from 1.00 à 0.50
2. Single-Wide Manufactured Home price adjustment will remain 1.00

Announcement 2023 - 27

Disaster Policy Update – California

Federal Emergency Management Agency (FEMA) announced a Major Disaster for the counties in California listed below due to recent severe storms, flooding, landslides and mudslides. Effective immediately, loans in the following counties are temporarily suspended until further notice.

Reference: FEMA Announcement

We will continue to monitor FEMA announcements and add or remove any additional area as needed.

In response to the potential damage caused by the event listed above, MK Lending requires Disaster Re-inspection for listed areas.

Announcement 2023 - 26

Fannie Mae SEL 2023-02 Valuation Modernization

MK Lending is aligning with the recent Agency announcements. The announcements are summarized below with a link to the gency’s full announcement.

Agency: Fannie Mae

Effective Date: 4/17/2023

Agency Announcement: SEL-2023-02

Summary: Fannie Mae has updated the terms and range of appraisal alternatives:

Use of Value Acceptance: Used in conjunction with the term “Appraisal Waiver”

Value Acceptance + Property Data: A new option that utilizes property data collection by a third party who conducts interior and exterior data collection on the subject property. When this option is used an appraisal is not required. This option also requires submission of the data to Fannie Mae’s Property Data API.

Hybrid Appraisals: Based on interior and exterior property data collection by a third party that is provided to an appraiser to inform the appraisal.

Announcement 2023 - 25

 Fannie Mae SEL-2023-03 Conventional Policy Changes

MK Lending is aligning with the recent Agency announcements. The announcements are summarized below with a link to the Agency’s full announcement.

Agency: Fannie Mae

Effective Date: Immediately

Agency Announcement: SEL-2023-03

Summary: Fannie Mae has updated the Selling Guide to include changes to the following:

Medical Collections: Revised underwriting requirements for collections and charge-offs on non-mortgage accounts. Specifically, medical collection accounts are no longer required to be paid off at or prior to closing for DU underwritten loans, regardless of the amount. This change will align the Selling Guide policy with DU’s risk assessment.

Use of earned real estate commission: Fannie Mae updated policy on verification of non-depository assets to permit the use of the borrower’s earned real estate commission for down payment and closing costs. The  borrower may use earned real estate commission as an eligible source of funds when the borrower is a licensed real estate agent and will receive a sales commission from the purchase of the subject property.

DU minimum reserve requirements: Minimum Reserve Requirements was updated to describe in more detail how DU determines the amount of required reserves for loan casefiles based on the transaction type, risk assessment of the loan casefile, and other factors.