COVID-19 Temporary Overlays Jumbo Underwriting Guideline Update—June 21, 2021

This announcement extends the temporary COVID overlays currently in place. Dates have been included where updates have been provided. Please contact Shane Larscheid, Vice President of Sales with any questions. 

All other documentation requirements detailed in our Jumbo Underwriting Guidelines must also be met in order to ensure compliance.

Overlay to Chapter Seven—Mortgage & Rental Payment Histories 

Temporary Requirement: In addition to the specifications outlined in Fannie Mae’s temporary Purchase and Refinance eligibility requirements found in LL 2021-03 (formerly LL-2020-03), AIG requires the following;

  • No mortgage loans or rental agreements for which the borrower is obligated may be in forbearance, including co-signed mortgage loans and rental agreements 
  • Loans to Borrowers who have exited forbearance on a mortgage or rental agreement which is current*, must document the following:
    • Borrower has exited forbearance.
    • The mortgage/rent is not in a repayment plan or loss mitigation program and the mortgage/rent is current*.

*For the purposes of these requirements, “current” means the borrower has made all mortgage payments due in the month prior to the note date of the new loan transaction, according to the terms of the original note, by no later than the last business day of that month.

Overlay to Chapter One and Two—Cash-out Refinance Transactions 

Temporary Policy: Cash-out refinance transactions are currently ineligible for purchase.

Overlay to Chapter One and Three—3-4 Unit Property Types 

Temporary Policy: Properties with three to four units are currently ineligible for purchase.