Fannie Mae issued Selling Guide Announcement SEL-2023-10 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Clarified that when a borrower is scheduled to begin new employment under the terms of an employment offer or contract, the offer or contract cannot be for employment by a family member or interested party to the transaction (this restriction applies regardless of whether a paystub is obtained prior to loan delivery); and
- Provided additional clarification to the repayment distribution requirements of a shared appreciation loan to permit acceleration of a shared appreciation payment in connection with an unauthorized transfer of ownership or change in occupancy status of the property; and
- Clarified what portion of shared appreciation proceeds must be applied against the first mortgage loan.
Revisions related to employment offers or contract requirements are effective with application dates on or after February 1, 2024 (lenders are, however, encouraged to implement these changes immediately). All other revisions are effective November 1, 2023.
Click to view the Fannie Mae Selling Guide Announcement SEL-2023-10: https://www.tenaco.com/wp-content/uploads/2023/11/Fannie-Mae-Selling-Guide-Announcement-SEL-2023-10-11-01-23.pdf
