Virginia Housing has recently learned that a change Fannie Mae implemented into Desktop
Underwriter (DU) is mistakenly causing the Conventional No MI (Risk Share) loans to
receive an Out of Scope. Fannie Mae expects the correction to be included in a DU
release in December 2020. We will communicate any additional information at that time.
Until resolution we are able to offer the following options to our business partners:
1. These loans may switch to the Virginia Housing Conventional program (HFA Preferred;
program name known as Fannie Mae Reduced MI until September 9, 2020) meeting all
Virginia Housing Conventional/Fannie Mae Reduced MI program guidelines, or,
2. The Virginia Housing Conventional No MI loans (HFA Preferred Risk Share, program
name known as Fannie Mae No MI until September 9, 2020) may be temporarily manually
Click here for procedures Originating Lenders must follow
We appreciate your understanding and cooperation until Fannie Mae corrects DU.
Email Melissa.Whitlow@VirginiaHousing.com Loan Program Underwriting Manager or