New Delivery Fee Cap and Changes to Delivery Fee Rates for Home Possible® Mortgages
December 10, 2015
In the December 9, 2015, Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-21, we announced a new delivery fee cap structure for certain Home Possible mortgages and updates to the delivery fee rates.
Home Possible mortgages that are not eligible for the delivery fee cap will be subject to all standard delivery fee rates including those in the updated Indicator Score/Loan-to-value (IS/LTV) pricing grid in Guide Exhibit 19, Postsettlement Delivery Fees.
The new IS/LTV grid and the delivery fee cap grid are replacing the separate Home Possible and Home Possible Advantage delivery fee grids in Exhibit 19. As a result, there will also no longer be a price differentiation between Home Possible and Home Possible Advantage transactions and between purchase and no cash-out refinance transactions involving Home Possible or Home Possible Advantage.
Additionally, we updated our mortgage insurance requirements for Home Possible Mortgages as follows:
- For mortgages with LTV ratios greater than 80 percent and less than or equal to 90 percent, standard coverage levels apply.
- For mortgages with LTV ratios greater than 90 percent, the minimum coverage level is 25 percent.
Please note that Home Possible Mortgages secured by Manufactured Homes will be subject to Home Possible Mortgage mortgage insurance requirements.
As you plan for your Home Possible mortgage deliveries, please take into account the impact of these three temporary processes that will be in place until February 29, 2016:
- Pipeline coverage for pricing purposes.
- Temporary billing process for Home Possible mortgages.
- Pricing displayed in the Selling System.