Fannie Mae issued Selling Guide Announcement SEL-2023-04 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Updated requirements for loans with shared equity or shared appreciation;
- Clarified that subordinate financing must be evidenced by a promissory note and reflected in a recorded security instrument that is clearly subordinate to Fannie Mae’s first mortgage;
- Clarified that an agreement under which the borrower is obligated to pay a third-party (other than a co-owner of the subject property) a share of any appreciation in the value of the property is not permitted in connection with subordinate financing unless the subordinate financing qualifies as a Community Seconds loan; and
- Updated tax filing documentation requirements to allow alternative documentation for IRS form 4868 as evidence the borrower has filed an extension for the prior year’s tax returns (lenders may now accept proof of e-filing of IRS Form 4868 or payment confirmation of all or part of the estimated income taxes due).
In addition, Fannie Mae updated the “Guide to Delivering eMortgages to Fannie Mae” to eliminate the requirement that lenders register the lien on the Mortgage Electronic Registration System when delivering an eMortgage to Fannie Mae.
Revisions related to shared equity or shared appreciation are effective for loans with Note dates on or after September 1, 2023. All other revisions are effective May 3, 2023.
Click to view the Fannie Mae Selling Guide Announcement SEL-2023-04: https://www.tenaco.com/wp-content/uploads/2023/05/Fannie-Mae-Selling-Guide-Announcement-SEL-2023-04-05-03-23.pdf
