Loan Prospector to Display New ARM Qualifying Rate Field[October 19, 2007]
On October 21, we will update Loan Prospector to display a new "ARM Qualifying Rate" field on the Loan Prospector Feedback Certificate for all adjustable-rate mortgages (ARMs) assessed through the system.
The new field will display the qualifying rate used to assess loans for traditional and nontraditional ARMs:
- Nontraditional ARMs: The rate displayed will be the higher of the note rate or an automatically calculated fully indexed rate for all Initial InterestSM ARMs
- Traditional ARMs: The rate displayed will be the value entered in the "ARM Qualifying Rate" field for all mortgages that do not have an interest-only feature
This Loan Prospector update reflects the changes announced to our underwriting requirements in our July 13 Single-Family Seller/Servicer Guide (Guide) Bulletin for all nontraditional mortgages with an interest-only component.
More Information
- Find out the complete details on the changes to our underwriting requirements for nontraditional mortgages with an interest-only component in our July 13 Guide Guide Bulletin.
- Review how our new underwriting requirements for nontraditional mortgages were implemented in Loan Prospector.