Fannie Mae issued Selling Guide Announcement SEL-2017-04, setting forth updates to the Selling Guide. The updated Selling Guide introduces a new student loan cash-out refinance option, providing a borrower the opportunity to payoff one or more student loans through a refinance transaction. The student loan cash-out refinance option contains elements of both a cash-out refinance and a limited cash-out refinance transaction. The updated Selling Guide also waives the project eligibility review requirement for Fannie Mae to Fannie Mae limited cash-out refinances on condos and PUDs, and extends the expiration term for Final Project Approvals submitted via the Project Eligibility Review Service (extended to 24 months). In addition, the updated Selling Guide: simplifies the options available to calculate the monthly payment amount for student loans; amends requirements for excluding non-mortgage debts from the debt-to-income ratio; permits cash-out refinances on properties that have been listed for sale in the past six months (previously prohibited); allows truncated asset account numbers on the loan application, in Desktop Underwriter (DU), and on asset documentation; eliminates the processing fee for Flash MBS execution; removes the requirement that loans sold through the Servicing Execution Tool Bifurcation option be underwritten in DU and receive an Approve/Eligible recommendation; and changes the name of the Capital Markets Sales Desk to the Capital Markets Pricing and Sales Desk. The updates went into effect April 25, 2017.
Click here to view the Fannie Mae Selling Guide Announcement
