Fannie Mae issued Selling Guide Announcement SEL-2023-01 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- updated eligibility requirements for cash-out refinance transactions to require that any existing first mortgage being paid off be at least 12 months old (as measured from the Note date of the existing loan to the Note date of the new loan);
- revised policies to reflect the updated risk assessment for DU loan casefiles when no borrower has a credit score (implemented in DU version 11.0);
- expanded policy to include the use of site-built comparables when appraising MH Advantage properties if MH Advantage comparables are not available;
- updated the DU “Approve/Ineligible Recommendations” and “Refer with Caution Recommendations” sections to clarify that the lender may attempt to resolve the reason for the ineligibility and resubmit the loan casefile to DU or manually underwrite the loan; and
- added a footnote to the list of Approved Mortgage Insurance Forms (under the Radian Guaranty Incorporated heading) explaining that certain Commitments & Certificates of Insurance issued by Radian with an old version date are acceptable for delivery.
Revisions related to eligibility policy for cash-out refinance transactions are effective for all cash-out refinances with Note dates on and after April 1, 2023. All other updates are effective February 1, 2023.
Click to view the Fannie Mae Selling Guide SEL-2023-01: https://www.tenaco.com/wp-content/uploads/2023/02/Fannie-Mae-Selling-Guide-Announcement-SEL-2023-01-02-01-23.pdf
