Fannie Mae issued Selling Guide Announcement SEL-2023-02 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- As part of the valuation modernization process, transitioned to a range of options to establish a property’s market value, with the option matching the risk of the collateral and loan transaction;
- Updated and clarified requirements regarding the use of sweat equity and nonprofit sweat equity program providers in connection with a HomeReady loan;
- Revised timelines and expectations with respect to both prefunding and post-closing quality control reviews;
- Incorporated the minimum financial requirements for lenders and servicers announced in Lender Letter LL-2022-04;
- Updated HomeStyle Renovation Mortgage requirements to reflect the use of both the renovation loan indicator in the Property and Loan Information portion of Form 1003 and line B of Qualifying the Borrower to properly identify the loan as a HomeStyle renovation loan; and
- Now requires the use of Condo Project Manager for projects where a full review is required.
Revisions related to valuation modernization, sweat equity, and HomeStyle Renovation Mortgages are effective March 1, 2023. Revisions related to the use of CPM are effective for loan applications dated on and after July 1, 2023. Revisions related to prefunding and post-closing quality control reviews are effective September 1, 2023 (lenders are, however, encouraged to implement the changes immediately). Revisions related to lender and servicer minimum financial requirements are effective as described in Lender Letter LL-2022-04 (generally September 1, 2023; however, certain provisions are effective December 31, 2023 and March 31, 2024).
Click to view the Fannie Maw Selling Guide Announcement SEL-2023-02: https://www.tenaco.com/wp-content/uploads/2023/03/Fannie-Mae-Selling-Guide-Announcement-SEL-2023-02-03-01-23.pdf
