Fannie Mae issued Selling Guide Announcement SEL-2023-06 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Revised review requirements for condo and co-op project eligibility with respect to properties in need of critical repairs and/or that have special assessments;
- Adjusted eligibility requirements for limited cash-out refinances to require at least 1 borrower on the new loan to be a current owner of the subject property (on title) at the time of the initial loan application (unless a permitted exception is met); and
- Incorporated the eligibility requirements for the sale of loans aged 6 months or less previously announced in Lender Letter LL-2021-03 (dated February 15, 2023).
Revisions related to condo and co-op project eligibility are effective for new loan applications dated on or after September 18, 2023 (if a lender has an unexpired project review completed prior to September 18, 2023, the lender must validate the new requirements have been met for loan applications dated on or after September 18, 2023). Revisions related to eligibility requirements for limited cash-out refinance transactions are effective for new loan applications dated on or after September 1, 2023 (lenders are encouraged, however, to comply with the revisions immediately). All other revisions are effective July 5, 2023.
Click to view the Fannie Mae Selling Guide Announcement SEL-2023-06: https://www.tenaco.com/wp-content/uploads/2023/07/Fannie-Mae-Selling-Guide-Announcement-SEL-2023-06-07-05-23.pdf
