Docutech’s Buydown Agreement (Cx25) conforms with the requirements set forth under:
- FNMA 2017 Selling Guide B2-1.3-05;
- FHLMC Single-Family Seller/Servicer Guide ch. 4204.4;
- FHA Single Family Handbook 4000.1 II.A.6.a(ix);
- VA Lender’s Handbook ch. 7, 9e; and
- RD HB-1-3555 ch. 11.5.
Under FNMA 2017 Selling Guide B2-1.3-05, “the buydown plan must be a written agreement between the party providing the buydown funds and the borrower.” The “party providing the buydown funds” can include the seller in a purchase transaction – thus, in Cx25, we include seller signature lines (if Field 15397 “Seller 1 Full Name” has a value) and the following text in the second-to-last paragraph in the body of the document (in all cases):
“The Builder/Seller specifically agrees that no repayment of the buydown funds is required.”
In order to improve this document, we will be configuring this sentence to only appear under the same condition as when the seller signature lines appear; thus, this text will not appear when a seller is not involved in the mortgage transaction.
This change will take effect on April 5, 2017. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
DR 224567