This document is an update and consolidation of multiple announcements beginning in late March 2020 and relates to temporary amendments to the AIG Conforming Underwriting Guidelines. Additional updates will be provided when applicable. Eligibility is based on the effective date compared to the lock date. Please contact Shane Larscheid, Vice President of Sales, with any questions.
All other documentation requirements detailed in our Conforming Underwriting Guidelines must be met in order to ensure compliance.
Loans aged beyond 30 days from closing at the time of delivery to AIG, may require a recertification of value.
AIG will follow Fannie Mae© LL-2020-03 issued on 3/31/2020, and updated on 9/24/2020, related to VOE requirements.
The Seller must ensure that the borrower is currently employed at the time of loan closing, and all income sources must be reviewed carefully to ensure that the income will continue at the same or similar levels when qualifying the borrower.
The requirement for re-verification of employment prior to purchase is no longer required for loans not yet purchased by AIG.
Paystubs and the written VOE must be dated within 60 days of the Note date until further notice.
AIG will follow Fannie Mae LL- 2020-03 guidance issued on 3/31/2020, and updated on 9/24/2020, related to employment verification requirements.
The Seller must ensure that the borrower is currently employed at the time of the loan closing, and all income sources must be reviewed carefully to ensure that the income will continue at the same or similar levels when qualifying the borrower.
Sellers should refer to Fannie Mae guidance as provided in LL-2020-03 updated 9/24/2020 related to year-to-date Profit & Loss.
Proceeds from the Small Business Administration Paycheck Protection Program (PPP) or any other similar COVID-19 related loans or grants are not considered business assets. Refer to the “CARES Act” for additional information. If it is determined that any portion of the PPP loan must be repaid, borrowers will need to qualify with the payment.
When transcripts are required and not available (per AIG Conforming Underwriting Guidelines); AIG will require one of the following:
AIG is providing overlays to Fannie Mae’s temporary Purchase and Refinance eligibility requirements, announced in LL- 2020-03 and updated 9/24/2020
Loans to borrowers that have exited forbearance on a mortgage or rent which is not current (borrower missed payments during the forbearance period), are eligible for purchase with the following documentation:
*Current as defined by Fannie Mae in LL- 2020-03 updated 7/9/2020.
Bank statements and VOD must be dated within 60 days of the Note date until further notice.
Market-based assets used for down payment or closing costs must be documented with evidence of liquidation in the closed loan package. Market-based assets to be considered as reserves, must be documented with the most recent two months or quarterly statements.
Market-based assets used for reserves must be valued at 70% of the vested value balance.
AIG will follow the guidance provided by Fannie Mae© in their LL- 2020-04 as it relates to appraisal requirements.
When obtaining exterior-only appraisals in place of a full appraisal report, Sellers must provide documentation in the file to evidence Fannie Mae’s ownership of the loan being refinanced. For refinances of non-Fannie Mae owned loans and all cash-out refinances, a traditional appraisal is required.
AIG will follow the guidance provided by Fannie Mae© in their COVID-19 release LL-2020-04, updated 9/24/2020, Flexibilities for Condominium Project Review.
Electronic notarizations are eligible in accordance with Fannie Mae© LL-2020-03 updated 9/24/2020, however, AIG is unable to purchase loans with e-Notes.
AIG is not aligning with Fannie Mae© LL-2020-03 temporary policies for the use of a power of attorney.
Waiting period waivers are considered ineligible.
All Note endorsements or allonges must include a wet signature.
AIG will continue to accept electronically recorded (e-recorded) security instruments, where allowed within state and county guidelines. A copy of the e-recorded instrument with recording information, and the original security instrument, should be forwarded to our custodian, Bank of New York Mellon, as a trailing document.
Gap coverage is acceptable for matters arising between the loan closing and the mortgage recording if the:
All loans must contain the Preliminary Title commitment at the time of receipt of the closed loan package, with no exception under Schedule B for the gap coverage.
Loans closed in a Trust are ineligible for purchase.
Properties with age-related Deed restrictions that limit transferability of title; or contain a “first right of refusal” are ineligible for purchase.
Loans which include a borrower with a residency status of Non-Permanent resident are ineligible for purchase.
Escrow holdbacks for any purpose other than weather related items are ineligible for purchase.