Fannie Mae issued Selling Guide Announcement SEL-2023-08 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Updated policy to allow the seller of the subject property to be an acceptable gift donor as long as the seller is not affiliated with another interested party to the transaction;
- Expanded policy to allow gift funds to be sourced from an estate of an acceptable donor or a trust established by an acceptable donor;
- Clarified that a 3D printed home with a traditional design and constructed using conventional building materials is not considered a unique or nontraditional type of housing and that lenders should follow the standard eligibility and comparable sale selection requirements for site-built housing;
- Removed the requirement that lenders obtain an insured closing protection letter for each loan secured by a manufactured home;
- Clarified shared appreciation provider requirements to permit the lender of a first mortgage to assign the loan to any housing finance agency within 6 months of closing (rather than a state housing finance agency);
- Added a requirement that funds used from a trust for down payment, closing costs, or reserves must be subtracted from the total funds available for determining continuity of income;
- Differentiated treatment of variable and fixed trust payments related to the use of trust income in qualification; and
- Added a requirement that lenders comply with the policies in the Employment-Related Assets as Qualifying Income section of the Selling Guide when eligible employment-related assets are liquidated and placed in a trust within 12 months of the loan’s application date.
Revisions related to trust income requirements are effective with application dates on or after Nov. 1, 2023 (lenders are, however, encouraged to implement these changes immediately). All other revisions are effective September 6, 2023.
Click to view the Fannie Mae Selling Guide Announcement SEL-2023-08: https://www.tenaco.com/wp-content/uploads/2023/09/Fannie-Mae-Selling-Guide-Announcement-SEL-2023-08-09-06-23.pdf
