Credit Variance Administration System Release Notes February 11, 2014 During the weekend of February 15, 2014, Fannie Mae plans to update the Credit Variance Administration System™ (CVAS™). The updates in CVAS will include system and user interface enhancements to provide lenders with more clarity, improve functionality, and enhance reporting capabilities. Updates associated with this release include: Project Eligibility Waiver (PEW) User Interface Enhancements • New “PEW Description” and “PEW Detail” data fields • Removal of unnecessary data fields and revision of non-public information (NPI) messaging • Increased size of variance request explanation field Single Loan Waiver (SLW) User Interface Enhancements • Removal of NPI messaging • File size warnings when uploaded files are greater than 2 MB • Increased size of variance request explanation field Additional Functionality Enhancements to CVAS Reporting/Tracking • Reporting capabilities enhanced to include additional query options • Updated “Tracker Log/Select Criteria” page Project Eligibility Waiver (PEW) User Interface Enhancements New PEW Description and PEW Detail Data Fields To further align the PEW request process in CVAS with Fannie Mae’s Selling Guide, and to provide additional clarity for users, new “PEW Description” and “PEW Detail” data fields will be added to the “Project Info” tab in CVAS. The new selection choices are provided in Appendix A: New PEW Description and PEW Detail Selection Choices. The new “PEW Description” field will replace the “Lender Warrants Exception” field, and provide additional waiver description selections for a lender to choose from when entering the PEW variance request. Both the “PEW Description” and “PEW Detail” fields will allow for the selection of one or more values. If a lender chooses “Other” in the new “PEW Detail” field, then the “Other Description” free-form data field becomes mandatory and the lender must enter a description in that field. Action Item: The old “Lender Warrants Exception” field will no longer be available after the CVAS release, and selected values associated with this field on non-decisioned PEW requests as of February 15, 2014, will be cleared. Users will need to update the non-decisioned requests to select the appropriate new value for “PEW Description” and “PEW Detail” for the associated loans. No action will be required for requests that have already been decisioned prior to February 15, 2014. © 2014 Fannie Mae. Trademarks of Fannie Mae. 2.7.2014 1 Removal of Unnecessary Data Fields and Revision of Non-Public Information Messaging The following loan-specific data fields will be removed from the PEW user interface and reporting as part of the CVAS release: Loan Amount Loan Term LTV CLTV Borrower Credit Scores Co-Borrower Credit Scores Housing Ratio Back-end Ratio Number of other Financed Properties With this release, the NPI message on the PEW screen (Project Info and Loan Data tabs) will be revised to read, "Do not input non-public personal information (NPI) such as borrower or co-borrower Social Security number or FICO score into the text box." Increased Size of Variance Request Explanation Data Field The “Provide Explanation Supporting Variance Request” field for PEW will be expanded to 2,500 characters in size to ensure that lenders have the ability to fully document their variance request and explanation. Single Loan Waiver (SLW) User Interface Enhancements Removal of NPI Messaging With this release, the NPI message will no longer be displayed on two SLW pages: the “Request Details” tab and the “Attach Files” page. File Size Warnings When Uploaded Files Are Greater Than 2 MB The message on the “Attach Files” page will be updated to notify users of file size restrictions. The message will read: "If there are any files to be attached then browse and select the files. Please note that files greater than 2 MB in size cannot be uploaded." Increased Size of Variance Request Explanation Data Field The “SLW Request Explanation” field will be expanded to 2,500 characters in size to ensure that lenders have the ability to fully document their variance request and explanation. Additional Functional Enhancements to CVAS Reporting/ Tracking Reporting Capabilities Enhanced to Include Additional Query Options As part of this release, the Ad Hoc Report within CVAS (for PEW and SLW queries) will be enhanced to include the following: Additional query options. For details, see Appendix B: Enhanced Reporting Capabilities and Query Options (PEW and SLW). Ability to select multiple values from the “Property State” field. © 2014 Fannie Mae. Trademarks of Fannie Mae. 2.7.2014 2 Ability to search records using “start with” or “contains” parameters in the “Project Name” and “Requester Name” fields. Updated Tracker Log/Select Criteria Page On the “Tracker Log/Select Criteria” page, a “Lender Name” column will be added to the display list. For More Information For more information about this release, please contact your designated Fannie Mae Representative. Appendices © 2014 Fannie Mae. Trademarks of Fannie Mae. 2.7.2014 3 Appendix A: New PEW Description and PEW Detail Selection Choices New PEW Description and PEW Detail Selection Choices New PEW Description Selections Budget/ Financial Co-op Specific HOA Delinquency Insurance: Project Related Litigation Non-Residential Use Sales and Project Occupancy Refinance Transaction Single Entity Ownership Other New PEW Detail Selections Budget Unavailable Non-Incidental Income Replacement Reserves < 10% Replacement Reserves < 5% Other* Co-op < 5 Units Flip Tax Loan Exposure > 20% Negative Cash Flow/ Net Loss Pledged Shares Proprietary Lease < Loan Term Pro Rata Resale Restrictions U/L MTG Term Other* HOA Deliq > 15% HOA Deliq > 20% HOA Deliq > 25% Elevator Liability Coverage Fidelity Coverage Flood Coverage Hazard Coverage Liability Coverage Other* Construction Defect Mechanics Lien Owner vs. Association Slip and Fall Other* Non-Residential >20% to 30% Non-Residential >30% to 40% Non-Residential >40% to 50% Conveyance < 90% Co-op Owner Occupancy <80% Investor Ownership > 49% Owner Occupancy < 51% Other* Fannie-to-Fannie Non Fannie-to-Fannie Single Entity Ownership > 10% Single Entity Ownership > 20% Single Entity Ownership > 30% Single Entity Ownership < 50% Developer in Control HOA Ground Leases Legal Requirements Mandatory Memberships Non-gut Conversion; 2-4 Unit Non-gut Conversion; Fannie Refi Project Completion Shared/ Leased Amenities Other* * If a lender chooses “Other”, then the “Other Description” free-form data field becomes mandatory and lenders must include a description. © 2014 Fannie Mae. Trademarks of Fannie Mae. 2.7.2014 4 Appendix B: Enhanced Reporting Capabilities and Query Options (PEW and SLW) Enhanced Reporting Capabilities and Query Options (PEW and SLW) Valid Values New Field Names* (As of August 10) (As of August 10) *Property State “All States” as the default option along with 50 USPS state codes, DC (District of Columbia) and three US Territories: PR (Puerto Rico), GU (Guam) and VI (Virgin Islands) *Project Name Searchable list *Assigned To (primary) Searchable list *Requester Name Searchable list *PEW Description a) Budget/ Financial b) Co-op Specific c) HOA Delinquency d) Insurance: Project Related e) Litigation f) Non-Residential Use g) Sales and Project Occupancy h) Refinance Transaction i) Single Entity Ownership j) Other See Appendix A *PEW Detail *Project Classification a) b) c) d) e) f) g) h) i) j) k) l) Location Ad Hoc Report All (default) Co-op – Type 1 Co-op – NJ Pilot Co-op – NY Pilot E- Established PUD Prjct F – New PUD Project P – Limited Review, New Prjct Q – Limtd Rev, Estblshd or 2-4 R – Expedited Rev, New Prjct S – Expdtd Rev, Estblshd or 2-4 T – Fannie Mae Review U-FHA – Approved Project *Fields will be added to the “Fields” list in the “Select Fields” section of the “Internal Ad Hoc Report” screen. © 2014 Fannie Mae. 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