Fannie Mae issued Selling Guide Announcement SEL-2025-02 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae is integrating Condo Project Manager with Desktop Underwriter (DU). In connection with the integration, Fannie Mae updated policy to allow loans that receive an “Approve/Eligible” recommendation and the “CPM Approved by Fannie Mae” status message in DU to retain the Fannie Mae project approval status through the credit report expiration date as specified on the DU report. For loans that do not receive the “CPM Approved by Fannie Mae” status message in DU or for loans not underwritten through DU, the lender must underwrite the condo project eligibility in accordance with standard Selling Guide requirements.
In addition, Fannie Mae
- Clarified delivery restrictions apply to Limited Reviews in connection with the CPM/DU integration;
- Clarified how to calculate the loan-to-value ratio when determining the mortgage insurance for transactions on co-op properties in New York State;
- Clarified that the income calculator is not limited to income types documented using tax returns (the calculator also includes calculations for rental income reported on Schedule E); and
- Updated the “Eligibility Matrix” to reflect the aligned changes made to the Selling Guide text with respect to updates previously communicated in the Desktop Underwriter/Desktop Originator Release Notes DU Version 12.0 and Selling Guide Announcement SEL-2025-01.
Revisions related to the CPM/DU integration are effective for loans with application dates on or after June 23, 2025 (lenders are, however, encouraged to implement the changes related to delivery restrictions immediately). All other revisions are effective April 2, 2025.
Click to view the Fannie Mae Selling Guide Announcement SEL-2025-02: https://www.tenaco.com/wp-content/uploads/2025/04/Fannie-Mae-Selling-Guide-Announcement-SEL-2025-02-04-02-25.pdf
