Fannie Mae issued Selling Guide Announcement SEL-2023-11 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Created a new “Income Calculator” to assist lenders in determining the monthly qualifying income for self-employed borrowers;
- Provided alternative options to meet verbal verification of employment requirements;
- added requirements to consider restricted stock and restricted stock units as eligible income;
- Clarified policy to allow lenders to gross-up certain nontaxable income without providing additional documentation;
- Incorporated a list of programs to assist with a lender’s review of shared equity providers and transactions;
- Added a new reporting requirement requiring large non-depository sellers and servicers to submit a Mortgage Bankers’ Financial Reporting Short Form on a monthly basis (in addition to the quarterly submission of the Mortgage Bankers’ Financial Reporting Form);
- Incorporated “The Guide to Delivering eMortgages to Fannie Mae” into the Selling guide and clarified the use of special purpose legal documents;
- Updated policy to permit attorney title opinion letters in lieu of a title insurance policy in limited circumstanced; and
- Updated the list of states that allow remote online notarization to include California.
Revisions related to restricted stock units and restricted stock as an eligible source of income are effective with application dates on or after March 1, 2024 (lenders are, however, encouraged to implement these changes immediately). Revisions related to the new monthly reporting requirement are effective May 31, 2024 (for the April, 2024 monthly reporting period). Revisions related to remote online notarizations in California are effective January 1, 2024. All other revisions are effective December 13, 2023.
Click to view the Fannie Mae Selling Guide Announcement SEL-2023-11: https://www.tenaco.com/wp-content/uploads/2023/12/Fannie-Mae-Selling-Guide-Announcement-SEL-2023-11-12-13-23.pdf
