Fannie Mae Issues Selling Guide Announcement SEL-2017-05

Fannie Mae issued Selling Guide Announcement SEL-2017-05, setting forth updates to the Selling Guide. Under the updated Selling Guide, Fannie Mae will accept delivery and servicing of mortgage loans that have been electronically notarized, either in person or remotely using real-time, two-way audio/video communication. The updated Selling Guide also allows lenders to maintain, in lieu of an original, a copy of a recorded mortgage, deed of trust, rider or modification, as long as the document includes the recording information from the recorder’s office. In addition, the updated Selling Guide: requires use of the gross mortgage margin contained in the security instrument when committing and delivering a whole loan ARM to Fannie Mae (currently ARMS are committed using the net margin); simplifies the “over delivery limit” (the limit by which a lender can deliver loans over the whole loan commitment amount); and removes certain requirements with respect to a cash back pair-off. The updates generally went into effect May 30, 2017. However, the use of the gross mortgage margin is effective for whole loan ARMs committed on or after September 1, 2017. The simplified “over delivery limit” and the amendments with respect to a cash back pair-off are effective June 12, 2017.

Click here to view the Fannie Mae Selling Guide