ZTed

Fannie Mae Announcement 2008-41 covers the following
important changes in underwriting guidelines, effective 9/29/08:

1) Cashout Refis need min 6 months seasoning of ownership
(Freddie Mac has the same guideline).

2) Only properties purchased after 12 months can use the
higher current appraisal value.

3) Only 70% cashout refi is allowed for properties listed
for sale within past 6 months. For limited cashout or
rate and term refi is exempted from this rule.

4) Refis that involve a borrower who is on the title but
not on the exiting loan to be paid off must be treated
as a cashout refi or limited cashout refi (rate and term),
depending on the program guidelines.

5) No more than 4 properties allowed for loans to second
homes or investment properties.