Fannie Mae issued Selling Guide Announcement SEL-2018-07 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae introduced a new appraisal waiver option for eligible home purchases in certain rural high-needs areas. The appraisal waiver is available for low- to moderate- income borrowers purchasing homes in targeted rural areas and is contingent on the borrower obtaining a home inspection. The lender must review the home inspection report and follow Fannie Mae’s property condition guidelines to confirm safety, soundness and structural integrity. In addition, Fannie Mae: revised and clarified requirements regarding liability, fidelity, and crime insurance for condo projects; increased the single-entity ownership policy for co-op projects from 10% to 20% (to align with the policy for condo projects); adopted the name “appraisal waiver” for what was previously called “property inspection waiver (PIW)” and “property fieldwork waiver”; streamlined and consolidated policy with respect to seller/servicer eligibility; and updated the list of Approved Mortgage Insurance Forms. The new appraisal waiver option will be available in Desktop Underwriter (DU) later this year and will be announced in a future “DU Release Notes”. Lenders must implement the revised requirements regarding liability, fidelity, and crime insurance for condo projects by January 1, 2019 (lenders can, however, implement the revisions immediately). All other changes are effective immediately.
Click Here to View the Fannie Mae Selling Guide Announcement SEL-2018-07
