Fannie Mae issued Selling Guide Announcement SEL-2024-01 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Revised the value acceptance + property data offering with respect to eligible property types, references to “C6 condition and Q6 quality”, acceptable appraisal reports, and property data collection in multiple transactions;
- Clarified the qualifying rate for 7- and 10-year ARMS (borrowers must be qualified using no less than the note rate for loans that are not high-priced or higher-priced mortgages);
- Expanded the loan term of a cash-out refinancing secured by a multi-width manufactured home to allow a loan term up to or equal to 30 years;
- Added additional examples of nontraditional credit references related to housing expenses;
- Clarified income calculation requirements for self-employed borrowers and borrowers with less than a 25% interest in a business;
- Clarified property insurance coverage requirements with respect to 1- to 4-unit properties and master property insurance policies for project developments;
- Added “crime rate or related data” and “crime (and its variants)” as examples to the list of unacceptable appraisal practices;
- Incorporated previously issued temporary policies related to selling loans requiring flood insurance in the event of a lapse of the National Flood Insurance Program; and
- Clarified that an individual who is not a loan applicant but whose credit is used in qualifying per applicable law is not required to sign the Note (however, the individual must be named in and sign the security instrument if the individual has an ownership interest in the property).
Revisions related to property insurance requirements are effective with application dates on or after June 1, 2024 (lenders are, however, encouraged to implement these changes immediately). All other revisions are effective February 7, 2024.
Click to view the Fannie Mae Selling Guide Announcement SEL-2024-01: https://www.tenaco.com/wp-content/uploads/2024/02/Fannie-Mae-Selling-Guide-Announcement-SEL-2024-01-02-07-24.pdf
