Fannie Mae issued Selling Guide Announcement SEL-2024-07 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Revised eligibility requirements for properties subject to leasehold estates to clarify and update lease requirements, address scenarios related to leasehold estates in projects, and to include co-ops as eligible property types;
- Clarified policy to resolve inconsistencies related to when a manufactured home requires submission to Project Eligibility Review Service (PERS);
- Updated requirements related to the Market Area analysis of the appraisal and implemented standardized definitions “Neighborhood” and “Market Area”;
- Clarified that both lenders and servicers are responsible for preventing, detecting, and reporting mortgage fraud;
- Added an exception to allow lenders to apply a principal curtailment post-delivery to refund the overpayment of charges paid by the borrower at loan closing, provided the amount of the curtailment does not exceed $500 (the amount, reason, and source of the curtailment must be documented); and
- Updated the Approved Mortgage Insurance Forms exhibit to revise Radian Guaranty Inc.’s form of Commitment & Certificate of Insurance and MassHousing Mortgage Insurance Fund’s Mortgage Payment Protection Endorsement.
Revisions related to leasehold estates are effective for loans with applications dated on or after March 1, 2025 ((lenders may, however, take advantages of the changes immediately). Revisions related to the Market Area analysis of the appraisal report are effective for loans with applications dated on or after February 4, 2025 (lenders are, however, encouraged to implement the changes immediately). Revisions related to preventing, detecting, and reporting mortgage fraud are effective March 1, 2025 (lenders and servicers are, however, encouraged to implement the changes immediately). All other revisions are effective November 6, 2024.
Click to view the Fannie Mae Selling Guide Announcement SEL-2024-07: https://www.tenaco.com/wp-content/uploads/2024/11/Fannie-Mae-Selling-Guide-Announcement-SEL-2024-07-11-06-24.pdf
