Fannie Mae issued Selling Guide Announcement SEL-2020-03 (Announcement). Per the Announcement, Fannie Mae updated the Selling Guide to include changes to the following:
- Lease review requirements (lenders are no longer required, at the loan-level, to obtain and review the lease agreement for the specific purpose of identifying contractual tenant rights);
- Late charge on note (lenders are provided additional flexibility to choose the late charge amount identified in the note);
- Escrow waiver on limited cash-out refinance (borrowers are no longer required to establish an escrow account when including delinquent taxes within a limited cash-out refinance);
- Project standards policy clarifications (clarifies requirements for horizontal property regimes and environmental hazards);
- HomeStyle Energy debt pay-off (clarifies that partial pay-offs are not eligible when HomeStyle Energy is used to pay-off energy-related debt); and
- Miscellaneous updates (updates relating to appraisal process alignments, certification of Mortgage Banker’s Financial Reporting Form 1002, use of Uniform Underwriting and Transmittal Summary Form 1008, and Lender’s QC notification process).
Lenders must comply with the requirement to certify the Mortgage Banker’s Financial Report Form beginning September 30, 2020. All other updates are effective immediately.
For more information, see: https://www.tenaco.com/wp-content/uploads/2020/06/Fannie-Mae-Selling-Guide-Announcement-SEL-2020-03.pdf
