Selling Guide Announcement (SEL-2021-01)
Feb. 03, 2021
The Selling Guide has been updated to include changes to the following:
- Seasonal and secondary income: simplified verification requirements related to these employment and income types
- Seller/Servicer-initiated post-purchase adjustment process: Use of the PPA Form to request post-purchase adjustments is now mandatory
- Miscellaneous update: removed references to authorizing release of data to us
View the list of impacted topics.
Seasonal and secondary income
We simplified the requirements for verifying income and employment as follows:
- Secondary employment: clarified that while a borrower may have different employers, they may not have any gap in employment greater than one month in the most recent 12-month period, unless the secondary employment is considered seasonal income.
- Seasonal income: removed the requirements to confirm with the employer if the borrower is likely to be rehired the next season and to confirm if the work is in the same job (or same line of work) as the previous two years.
Effective: Lenders may take advantage of these changes immediately. DU messaging will be updated in a future release.
Seller/Servicer-initiated post-purchase adjustment process
When sellers/servicers find a discrepancy between data attributes submitted at the time of delivery to Fannie Mae and their loan records, a post-purchase adjustment (PPA) may be required. A PPA is also required when the lender believes there is an error in the whole loan Purchase Advice.
In our "Selling + Servicing News,” we recently communicated updates to the PPA process and a new requirement for the use of the Post-Purchase Adjustment Request form (which used to be optional). The Selling Guide has been updated to reflect the changes to the process and the requirement for the PPA form. Refer to our website and the Seller/Servicer-Initiated Post-Purchase Adjustment Job Aid for additional information.
B7-1-01, Provision of Mortgage Insurance: removed references to authorizing release of data to us since this applies only to legacy loans that are being serviced. The policy is in the Servicing Guide.
|Section of the Announcement||Updated Selling Guide Topics (Dated Feb. 03, 2021)|
|Seasonal and secondary income|
|Lender initiated post-purchase adjustment process|
Lenders may also contact their Fannie Mae Account Team if they have questions about this Announcement.
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