Fannie Mae issued Selling Guide Announcement SEL-2019-01 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae has transitioned to Loan Quality Connect to manage the post-process review process. Loan Quality Connect is a new platform that replaces the Quality Assurance System. In addition, Fannie Mae: removed all references to the “monthly weighted-average cost of funds index (COFI)” from the Selling Guide and associated ARM plans (due to the retirement of the index in January 2020); and clarified that completion escrow accounts (established for postponed improvements in connection with new or proposed construction) must be custodial accounts that satisfy the criteria set forth in the Servicing Guide. The clarification with respect to completion escrow accounts must be implemented on or before May 6, 2019 (lenders may, however, implement the clarification immediately). All ARM loans that used the COFI index must be delivered to Fannie Mae. The last issue date for negotiated MBS deliveries is April 1, 2019. All other changes are effective immediately.
Click Here to View the Fannie Mae Selling Guide Announcement SEL-2019-01
