Fannie Mae issued Selling Guide Announcement SEL-2022-05 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- updated policy on limited cash-out refinance transactions for two-closing construction-to-permanent loans to allow documented construction cost overruns that occurred outside of the interim construction lien to be included in the new loan amount;
- clarified the definition of group home and related property eligibility;
- clarified policy for determining the index value used to calculate the fully indexed rate for Adjustable-Rate Mortgage (ARM) loans to better align policy Regulation Z; and
- removed all references to the Form 1003 7/05 revision (06/09).
The Announcement is effective June 1, 2022.
Click to view the Fannie Mae Selling Guide Announcement SEL-2022-05: https://www.tenaco.com/wp-content/uploads/2022/06/Fannie-Mae-Selling-Guide-Announcement-SEL-2022-05-05-04-22.pdf
