24-73: Fannie Mae SEL 2024-04: HomeReady Housing Counseling LLPA Credit

07/31/2024
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Fannie Mae Selling Guide Announcement 2024-04 announced updates and new flexibilities to the HomeReady program that make it easier for borrowers to qualify for the $500 loan-level price adjustment (LLPA) credit when HUD-approved housing counseling is completed on a HomeReady transaction.

Updates

  • Borrowers now have a full 12 months prior to loan closing to complete HUD-approved housing counseling and be eligible for the LLPA credit.
  • Housing counseling information from the Supplemental Consumer Information Form (Form 1103) must be submitted directly through Desktop Underwriter® (DU®).
  • The Certificate of Completion of Housing Counseling (Form 1017) is no longer required.

Important Reminders

  • A copy of the borrower’s housing counseling completion certificate must be retained in the loan file.
  • Loans where homeownership education is required and the completion certificate is dated after the note date are ineligible for purchase by Pennymac

Note: These changes were implemented in DU® the weekend of July 20, 2024. Pennymac is aligning with these changes effective immediately.

Please contact your Sales Representative with any questions.