Updated Policy for Converting Primary to Secondary/Investment Residence
Please see the Fannie Mae "Announcement 08-16". This document introduces and/or updates policies pertaining to bankruptcy and foreclosure, conversion of principal residence to second home or investment property, and representation and warranty requirements. Please read this bulletin carefully and contact Broker Support or your Account Executive if you have any questions.
Since this announcement validates and reflects Direct Mortgage Corp's commitment to originate quality loans, we're making several changes in alignment with the announcement. First and foremost, the policy for the conversion of principal residence to second home or investment property will be applied to all DMC loans, including FHA loans and loans processed using Loan Prospector. Second, ALL new loans registered on or after July 1 are subject to these policy enhancements.