HARP2: DU Refi Plus and Refi Plus
Refi Plus (Manual U/W; Guild-to-Guild)
Description
Borrower Benefit
Channel of Business
Existing Servicer
Underwriting Method
Loan Purpose
LTV
CLTV
Subordinate Financing
Eligible Borrowers
Rev. 03/08/12
DU Refi Plus
Home Affordable Refinance provides refinance opportunities to borrowers with existing Fannie Mae loans who have
demonstrated an acceptable payment history but have been unable to refinance to obtain a lower payment or move to a more
stable product. The loan being refinanced must have been delivered to Fannie Mae prior to June 1, 2009.
The lender must represent and warrant that the borrower is receiving a benefit in the form of either:
 A reduced monthly P&I payment
 A reduced interest rate
 A reduced amortization term
 A more stable product (for example, ARM to fixed rate)
Retail only
Retail, wholesale, and correspondent
Originating lender must be the current servicer (Guild to Originating lender is not required to be the current servicer
Guild only).
Manual Underwriting only
DU underwriting, must be A/E. Loans may be converted to Refi Plus
(manual) provided the lender is the current servicer.
Limited cash-out refi only, with payoff of existing first mortgage, financing of closing costs, and no more than $250 cash to
borrower
Unlimited
Unlimited for owner occupied and second homes
105% for investment properties
125% Max LTV for Correspondent
Unlimited
Unlimited for owner occupied and second homes
110% for investment properties
 All existing subordinate financing must be re-subordinated
 No new subordinate financing is permitted
 No restrictions on terms of existing subordinate financing
Subordinate lienholder may not agree to re-subordinate, or will not consider without an appraisal
 Borrowers may be removed for any reason,
 Borrowers may be removed for any reason provided remaining
including death or divorce, provided remaining
borrowers show proof of making payment for 12 month, and
borrower shows proof of making payments for 12
borrower being removed is also removed from the deed
months, and the borrower being removed is also
 In the case of borrowers being removed due to death, evidence of
removed from the deed (evidence of death must be
making payments for 12 months is not required (with evidence of
provided in the file)
death provided in the file)
 Borrowers may be added in the new transaction
 Borrowers may be added in the new transaction provided the
provided the original borrowers remain on the loan
Occupancy
Payment History
Bankruptcy ,
Foreclosure, Short Sale
Verification of
Employment/Income
Verification of
Assets/Reserves
Credit Scores
DTI
No. of Financed
Properties
Property Valuation
Project Eligibility
Rev. 03/08/12
REFI PLUS
1-4 primary residence, second home, and 1-4 investment
property; all property types including condos,
manufactured housing and PUD’s.
Existing mortgage must be current, and:
 No delinquency in the most recent 6 month period
 No more than 1x30 in months 7-12
Standard Fannie Mae policies do not apply regarding
prior bankruptcy or foreclosure
P&I not increasing by >20%: Must verify employment
and source of non-employment income, if any. Ability to
repay the mortgage is based upon acceptable payment
history on the existing mortgage, and the borrower
benefit provisions.
P&I is increasing by more than 20%: Borrower must be
re-qualified for the new loan; including verification of all
income sources and amounts (verification of any assets
needed to close). Max DTI 45%; 620 FICO
 If assets are required for closing, must be verified
original borrowers remain on the new loan


DU REFI PLUS
Manufactured homes not allowed
2-4 units not allowed


No 60-day late in past 12 months on any mortgage trade line
No limit on payment increase
Standard Fannie Mae and DU policies do apply regarding prior
bankruptcy or foreclosure
Must obtain a verbal VOE and verify the source of borrower’s nonemployment income; plus obtain any other income documentation
per DU Findings. Lender is relieved of reps & warrants if all of the DU
requirements are met; and enters data that is complete, accurate, and
not fraudulent.
 One paystub and verbal VOE
 Commissioned/Self-Employed: one year federal tax return
Must be verified to the extent that DU Findings require such
verification. Lender is relieved of reps & warrants if all of the DU
requirements are met; and enters data that is complete, accurate, and
not fraudulent.
 No minimum
 620 for Primary
 If P&I increasing by >20%, minimum 620
 680 for second home/investment
Current representative score required at loan delivery for pricing purposes
None, unless P&I increasing by >20%: 45% DTI
DU will calculate
LTV < 125%: No limit
 Owner Occupied: no limit
LTV >125%: Maximum 4 financed properties
 Investment or Second Home: Maximum 4 financed properties
Lender is responsible for standard reps & warrants
 DU Property Inspection Waiver: Lender is relieved of reps &
related to the value, marketability and condition
warrants related t value, marketability or condition. $75 fee (PIW
reflected in the property valuation used to support the
will not be offered when LTV/CLTV >125%, or for 2-4 units or
refinance transaction. Will use a new appraisal.
manufactured homes)
 When an appraisal is required, must be supported by a desk
review at a minimum (our overlay)
Lender is responsible for reps and warrants on the
No new project review required; lender must confirm project is not a
original loan regarding project eligibility, fraud, and
hotel or motel.
compliance with laws.
Refi Plus
PMI

High Balance
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Rev. 03/08/12
All MI companies have guidelines for same-servicer
modification of existing MI policies. Review the
applicable MI company website for details.
LPMI is allowed
LTV >125%: loans requiring MI are not allowed
Allowed; must meet >125% DU Refi Plus guidelines
DU Refi Plus


Guild-to-Guild: see Refi Plus guidelines
Different servicer refinance: Loans requiring MI are not allowed

Allowed (except for Correspondent, at this time)