Fannie Mae issued Selling Guide Announcement SEL-2019-07 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae now allows lenders to use construction-to-permanent financing when originating a manufactured home loan. The construction-to-permanent policies described in Chapter B5-3 (Construction and Energy Financing) of the Selling Guide are now applicable to manufactured home loans. Fannie Mae also clarified several manufactured home policies, and published a New Manufactured Home Financing Matrix (that compares Fannie Mae’s standard manufactured home underwriting requirements to the construction-to-permanent options that are now available).
Fannie Mae also updated lender quality control (QC) process requirements to help clarify Fannie Mae’s intent and to provide additional flexibility to lenders. Specifically, Fannie Mae: added requirements with respect to QC vendor reporting timeframes and statistical sampling methodology; added guidance related to the independence of the QC function, the QC staff, and the reverification of income, employment and assets; and provided new flexibilities related to the reverification of Social Security retirement income and military income.
In addition, Fannie Mae:
- removed the requirement that the borrower’s name on the loan casefile and the prior appraisal have to match in order for an appraisal waiver to be considered (in connection with a refinance transaction);
- removed all references to DU Refi Plus and Refi Plus loans (due to the previously announced expiration of the DU Refi Plus and Refi Plus program); and
- with respect to HomeStyle Renovation mortgages, clarified that all applicable renovation funds must be deposited into an escrow account that meets the requirements of the Selling Guide;
Updates to QC independence and statistical sampling requirements must be implemented by January 1, 2020 (lenders may, however, implement the updates immediately). All other updates are effective immediately.
Click Here to View the Fannie Mae Selling Guide Announcement SEL-2019-07
