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Paid-Off Revolving Debt No Longer Required to be Closed - Fannie
Wednesday, May 27, 2015
has issued a slew of updates, clarifications, and extensions affecting its Selling Guide. Announcement SEL-2015-06 includes the following
changes. The most notable change concerns the way paid-off revolving debt is treated.
Payoff of Revolving Debt at or
Prior to Closing:
Effective immediately, if the balance of a
revolving debt has been paid down to zero before settlement the Selling Guide no long requires that the account
be closed. The account may remain open even
as the DTI ratio is adjusted to reflect the change in monthly payment. Lenders may
ignore the automatic reminder from Desktop Underwriter (DU) regarding an open account
until that feature is removed in a DU release later in 2015.
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