Fannie Mae issued Selling Guide Announcement SEL-2023-05 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- updated manufactured home loan requirements to allow temporary interest rate buydowns (previously prohibited);
- updated ARM requirements to allow 7- and 10-year ARM borrowers to be qualified using only the Note rate (previously, borrowers were required to be qualified based on the greater of the Note rate or the fully indexed rate);
- Clarified that the proceeds of a limited cash-out refinance may be used to pay off the existing first mortgage, and may be used to satisfy any share of appreciation due to a provider under the terms of a shared appreciation agreement when the subordinate lien is a Community Seconds loan;
- clarified that credit reports used for underwriting must generate an inquiry on future reports, except for reports used in the post-closing reverification process;
- retired Form 1072 (Authorization for Automatic Transfer of Funds) to align with policies for the recent enhancements to the Cash Remittance System); and
- updated Form 360 (Certificate of Authority, Incumbency, and Specimen Signatures) to remove references to ACH fund transfers and to clarify that the form is now only applicable to single-family sellers.
Revisions of temporary interest rate buydowns for manufactured home loans will be implemented in Desktop Underwriter the weekend of August 19, 2023 (loans will be eligible for sale after that date). Revisions related to qualification for 7- and 10-year ARM borrowers will be implemented in Desktop Underwriter the weekend of August 19, 2023 (lenders may, however, take advantage of this policy change immediately for manually underwritten loans). All other revisions are effective June 7, 2023.
Click to view the Fannie Mae Selling Guide Announcement SEL-2023-05: https://www.tenaco.com/wp-content/uploads/2023/06/Fannie-Mae-Selling-Guide-Announcement-SEL-2023-05-06-07-23.pdf
