source:
  type: guide
  id: fnma-sel-b5-7-05
  authority: Fannie Mae Selling Guide B5-7-05 — High LTV Refinance Pricing, Mortgage
    Insurance, and Special Feature Codes
  description: Fannie Mae Selling Guide B5-7-05 — High LTV Refinance Pricing, Mortgage
    Insurance, and Special Feature Codes.
  coverage_tier: operative
obligations:
- id: fnma-sel-b5-7-05-full
  canonical_id: fnma-sel-b5-7-05-full
  section: Fannie Mae Selling Guide B5-7-05 — High LTV Refinance Pricing, Mortgage
    Insurance, and Special Feature Codes
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B5-7-05 — High LTV Refinance Pricing, Mortgage
      Insurance, and Special Feature Codes
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B5-7-05, High LTV Reﬁnance Pricing, Mortgage Insurance, and
      Special Feature Codes (08/07/2018) Introduction This topic contains information
      about the high LTV reﬁnance option, including: Loan-Level Price Adjustments
      Mortgage Insurance Loan Delivery Requirements Published May 6, 2026 818 Whole
      Loan Committing and Pooling of Loans with LTV Ratios Above 105% Loan-Level Price
      Adjustments The LLPAs that are applicable to high LTV reﬁnance loans are detailed
      in the Loan-Level Price Adjustment (LLPA) Matrix. Caps may apply based on the
      LTV ratio and amortization term, and excess LLPAs will be waived at delivery.
      Mortgage Insurance The following table provides mortgage insurance requirements
      for high LTV reﬁnance loans. If the loan being reﬁnanced... Then... does not
      have mortgage insurance mortgage insurance will not be required on the new loan.
      has existing mortgage insurance the existing mortgage insurance coverage must
      be continued on the new loan. To accomplish this, the mortgage insurer will
      modify the existing MI certiﬁcate and transfer it to the new loan. Such transfer
      may or may not include assignment of a new MI certiﬁcate number. Lenders should
      check with the mortgage insurer for speciﬁc requirements. Existing loans with
      ﬁnanced mortgage insurance are eligible for high LTV reﬁnance loans. There should
      be no diﬀerence in how coverage is continued on the reﬁnance of such loans versus
      existing loans that do not have ﬁnanced mortgage insurance. The existing coverage
      can be continued on the new loan regardless of whether the ﬁnanced premium on
      the existing loan was paid as a single premium or a split premium. Mortgage
      insurance coverage must extend for the life of the new loan, or until cancellation
      or termination of coverage as required by law or Fannie Mae guidelines. For
      example, even if a 15-year loan that is 3 years old is reﬁnanced into a 30-year
      loan, the mortgage insurance coverage should be extended for the full life of
      the new loan. A mortgage insurance company may charge a reasonable fee to transfer
      the certiﬁcate. Fannie Mae allows such cost to be rolled into the UPB of the
      new loan as a closing cost as long as the loan will still comply with both Fannie
      Mae and mortgage insurer guidelines. See B7-1-02, Mortgage Insurance Coverage
      Requirements for additional information. Loan Delivery Requirements Published
      May 6, 2026 819 For high LTV reﬁnance loans, lenders must provide all applicable
      loan delivery data elements and special feature codes. The following special
      feature codes (SFC) may apply: SFC 839 may optionally be delivered for high
      LTV reﬁnance loans underwritten using the standard requirements. SFC 840 is
      required for high LTV reﬁnance loans that are underwritten using the Alternative
      Qualiﬁcation Path. These codes are to be used in addition to any other special
      feature codes that may apply. Income must be reported to Fannie Mae for all
      high LTV reﬁnance loans at the time of loan delivery even for those transactions
      where there is no maximum DTI ratio. For high LTV reﬁnance loans with payment
      changes less than or equal to 20%, the lender must report the stated income
      on the loan application (if any). If the borrower does not state any income
      and the lender uses the veriﬁcation of reserves option as the income source,
      the lender must deliver the equivalent of the new monthly payment (PITIA) as
      the “Monthly Income” data element (Sort ID 291). Note: Lenders must report gross
      monthly rent in the loan delivery data for all investment properties and two-
      to four- unit principal residence properties, regardless of whether the borrower
      is using rental income to qualify for the mortgage loan. See A3-4-02, Data Quality
      and Integrity for additional information. Whole Loan Committing and Pooling
      of Loans with LTV Ratios Above 105% Separate committing is required for high
      LTV reﬁnance loans with LTV ratios above 105%. These loans may not be delivered
      against standard whole loan commitments. Speciﬁc “High LTV Reﬁ” products are
      available in Fannie Mae’s whole loan committing application. High LTV reﬁnance
      loans with LTV ratios above 105% cannot be included in TBA-eligible MBS, but
      must be included in pools speciﬁcally created for loans with LTV ratios above
      105%. Furthermore, lenders may be able to deliver high LTV reﬁnance loans with
      LTV ratios above 105% into the respective Fannie Majors pool speciﬁcally available
      for these loans. Due to the separate pool preﬁxes required for loans with LTV
      ratios above 105%, these loans may not be delivered into standard TBA-eligible
      Fannie Majors pools. However, MBS deliveries of loans reﬁnanced under this new
      option are eligible for securitization utilizing existing Fannie Mae pool preﬁxes.
      Recent Related Announcements There are no recently issued Announcements related
      to this topic. Subpart B6, Government Programs Eligibility and Published May
      6, 2026 820 Underwriting Requirements Introduction This subpart contains information
      on government mortgage loans eligible for sale to Fannie Mae. Chapter B6-1,
      Government Insured and Guaranteed Mortgages Introduction This chapter describes
      the requirements for selling a government mortgage loan to Fannie Mae. These
      include the general requirements related to all government mortgage loans as
      well as the requirements for speciﬁc government mortgage programs.'
  judgment: false
