June 3, 2020
Overview of Selling Guide Updates
The Selling Guide has been updated to include changes to the following:
- Lease review requirements: no longer requiring lenders, at the loan-level, to obtain and review the lease agreement for the specific purpose of identifying contractual tenant rights.
- Late charge on the note: providing additional flexibility to lenders to choose the late charge amount identified in the note.
- Escrow waiver on limited cash-out refinance: no longer requiring borrowers to establish an escrow account when including non-delinquent taxes within a limited cash-out refinance transaction.
- Project standards policy clarifications: clarified requirements related to horizontal property regimes and environment hazards.
- HomeStyle Energy debt pay-off: clarified that partial pay offs are not eligible when HomeStyle Energy is being used to pay off energy-related debt.
- Miscellaneous updates: Appraisal process alignments, Mortgage Banker’s Financial Reporting Form 1002, Form 1008 effective date, Lender’s QC notification process
Announcement SEL-2020-03 details these updates and lists the impacted Selling Guide topics.
For more information, visit the Fannie Mae Selling Policy Communications to access a list of Selling Announcements, Lender Letters, Notices, and related communications.
The PDF version of the current Selling Guide can be found here.