Stocks, bonds, mutual funds:

As you know Fannie Mae has been continually trying to relax qualifications and procedures for borrowing/lending. With this in mind they have also implemented some of changes to the use of Stocks, Bonds, and Mutual funds as reserves. The changes were announced in lay May and more details came about in early June. The changes were fully implemented on August 15th. So without further ado, here there are.

The new policy is simple. 100% of the value of vested stocks, bonds, and mutual funds can be counted when calculating available reserves.

The documentation also got much easier. If the assets equal 20% or more of the funds needed for the borrowers closing costs and down payments there is no requirement of documentation of liquidation. If the total does not equal 20% than a receipt of the sale/liquidation is required.

Everyone loves availability and an easier process. The fantastic news is these changes are here to stay! Check out this link from Fannie Mae for more details- https://www.fanniemae.com/content/announcement/sel1507.pdf.