Fannie Mae issued Selling Guide Announcement SEL-2021-11 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- modified the definition of principal residence to include military service members on active duty;
- clarified documentation requirements for borrowers that have filed an extension with the IRS;
- expanded allowable comparable sales for new (or recently converted) condo projects;
- established standard requirements for measuring, calculating, and reporting gross living and non-gross living areas;
- consolidated property insurance requirements applicable to both lenders and servicers;
- moved income from unemployment benefits to be part of the public assistance income policy and clarified additional ways to consider unemployment income;
- removed a separate definition for funding date from the Servicing Marketplace – Mortgage Loan Servicing Purchase and Sale Agreement, and aligned the definition for purchase date with terminology used elsewhere in the Selling Guide;
- clarified that loan-level price adjustments are based on the gross LTV ratio, except for those associated with the minimum mortgage insurance coverage option, which are based on the net LTV ratio;
- updated the Condominium Project Questionnaire (Form 1076) to add an addendum to facilitate collection of information regarding deferred maintenance; and
- retired the Condominium Project Questionnaire Short Form (Form 1077).
Revisions related to the standard requirements for measuring, calculating and reporting gross living area are effective for appraisals dated on or after April 1, 2022 (Lenders may, however, begin accepting appraisals using this standard immediately). All other updates are effective immediately.
Click to view the Fannie Mae Selling Guide Announcement SEL-2021-11: https://www.tenaco.com/wp-content/uploads/2021/12/Fannie-Mae-Selling-Guide-Announcement-SEL-2021-11-12-15-21.pdf
