24-91: AUS Jumbo General Updates and Clarifications

08/30/2024
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Effective August 30th, 2024, the AUS Jumbo product profile has been updated with the following:

What’s New?

Announcement 24-80 released on August 14, 2024 announced the following changes effective with new applications dated on or after August 30, 2024:

Appraisal Requirements:

  • Single appraisals will require a secondary valuation assessment.
  • A clarification was provided on determining LTV when two full appraisals are required.

Interest Rate Buydowns:

  • Temporary buydowns are eligible for purchase transactions with loan amounts up to $1,500,000. Additional restrictions apply.

Please refer to Pennymac Announcement 24-80 and the AUS Jumbo Product Profile for complete requirements.

1008 Requirements:

  • AUS section updated to add requirement for a completed 1008 (effective for new applications dated on or after August 30, 2024).

General Updates & Clarifications

The following sections of the AUS Jumbo Product Profile have been updated to provide additional clarity. No guidelines were changed as a result of this update.

  • Condominium Section:
    • Added a reminder that new projects in Florida are not eligible unless a Fannie Mae PERS approval is received.
  • Credit Section:
    • Clarified that the mortgage history reflected on the credit report can be used to meet mortgage payment history requirements.
  • Documentation: Income and Assets
    • Clarified Certificate of Eligibility (COE) can be used to document VA disability.
  • Loan Purpose Purchase and Refinance Section:
    • Separated out refinance requirements for Fannie Mae and Freddie Mac requirements; and
    • Aligned more closely with the Fannie Mae and Freddie Mac Selling Guide language to provide additional clarity to what is eligible and not eligible.
  • Property Ineligible Types Section:
    • Added a bullet to further clarify 3–4-unit properties are ineligible (existing restriction).
    • Revised ADU manufactured home bullet to add clarity that the ADU property type is eligible and must meet applicable AUS/GSE Selling Guide requirements.
  • Product Matrices:
    • Reformatted to provide greater clarity for the product requirements.

Please contact your Sales Representative with any questions.