Fannie Mae Selling and Servicing Policy Archives

Provides a summary of Selling Guide, Servicing Guide, and other policy related communications & updates issued in 2024.

Updated June 26, 2024 – This Lender Letter contains the policies previously published in LL-2021-12 on Dec. 14, 2022, with the changes noted within. It provides advance notice of upcoming changes to our Master Servicing processes and systems. These changes include the retirement of the Servicer’s Reconciliation Facility™ (SURF™) application in 4Q 2023.

June 12, 2024 – Fannie Mae has approved the acquisition of Republic Mortgage Insurance Company and Republic Mortgage Insurance Company of North Carolina and its affiliates (RMIC) by Arch U.S. MI Holdings, Inc., a subsidiary of Arch Capital Group Ltd. RMIC is now an affiliate of our approved mortgage insurers Arch Mortgage Insurance Company and United Guaranty Residential Insurance Company.

June 5, 2024 – In June, the Selling Guide has been updated to add Special Feature Code 887 for loans delivered using a standby commitment, updates the glossary definition of closing costs, expands timeframes for completion of counseling and eliminating Form 1017, retires the requirement for a completed Form 2200 at loan delivery, and other miscellaneous updates.

Selling Guide - PDF Version (June 5, 2024)

May 29, 2024 - In alignment with Freddie Mac and at the direction of FHFA, this Lender Letter updates the steps for determining the Fannie Mae Flex Modification terms to expand borrower eligibility and provide more equitable payment reduction to eligible borrowers. Servicers may implement these changes starting Nov. 1 but must implement them by Dec. 1.

May 13, 2024 – Area median incomes (AMIs) for 2024 will be implemented in Desktop Underwriter® (DU®) and HomeReady® application programming interfaces (APIs), Loan Delivery, and the Area Median Income Lookup Tool effective May 19. The AMIs will continue to be applied in DU based on the casefile create date while the Application Received Date provided in Loan Delivery will be used to determine which AMI limit to use when evaluating eligibility for the loan-level price adjustment (LLPA) waiver.

May 8, 2024 – The May Servicing Guide update includes changes to clarify the submission requirements for Audited Financial Statements, Form 1001, and Form 582, as well as other miscellaneous updates.

Servicing Guide - PDF Version  (May 8, 2024)

May 8 – We are responding to concerns heard regarding lenders’ and servicers’ ability to comply with our long-standing policy to obtain the replacement cost value following our Feb. Selling Guide and Servicing Guide Announcements.

May 1, 2024 – In May, the Selling Guide has been updated to introduce a definition for a first-generation homebuyer loan, added requirements for a borrower-initiated appeals process for appraisals, clarified when an Affidavit of Affixture is required for manufactured housing loans, expanded our shared equity policies related to manufactured housing in community land trust properties, allow sellers/servicers to designate MERS as the nominee for the beneficiary in the security instrument for co-op share loans, updated requirements for submission of financial statements and reports, added details to supplement previously issued policy requirements pertaining to trust income, and other miscellaneous updates.

Selling Guide - PDF Version (May 1, 2024)

April 15, 2024 – We are aware of the proposed settlement agreement, subject to court approval, announced by the National Association of REALTORS® (NAR) in the Burnett et al and Moehrl et al cases. While there are no immediate changes to our Selling Guide policies, we are clarifying the current treatment of seller-paid real estate agent fees under our interested party contributions (IPCs) policy.

March 13, 2024 – This announcement adds instructions to the Loan Modification Agreement (Form 3179) in response to New York’s Foreclosure Abuse Prevention Act and the instructional provision related to MERS and provides other miscellaneous updates.

March 6, 2024 – In March, the Selling Guide has been updated to expand the DU validation service to allow income and employment validation using an asset verification report.

Selling Guide - PDF Version (March 6, 2024)

Portfolio FIN Recon Job Aid

February 14, 2024 – The February Servicing Guide update clarifies servicer responsibilities related to monitoring and verification of property insurance coverage and provides other miscellaneous updates.

Servicing Guide - PDF Version  (February 14, 2024)

February 7, 2024 – The February Selling Guide expands the value acceptance + property data offering to include condos, clarifies the qualifying rate for 7- and 10-year ARMS, allows cash-out refinances for manufactured homes with terms up to 30 years, updates eligible types of nontraditional credit references, clarifies policies for the use of business income, clarifies property insurance coverage requirements, updates mortgage origination definitions, and includes other miscellaneous updates.

Selling Guide - PDF Version (February 7, 2024)

January 24, 2024 – This Lender Letter updates policies to address some of the barriers to entry for very low-income purchase borrowers, we are offering a temporary $2,500 loan-level price adjustment credit on our HomeReady® loan product. This credit can be used for down payment and closing costs on loans delivered after March 1, 2024.

Provides a summary of Selling Guide, Servicing Guide, and other policy related communications & updates issued in 2023.

December 20, 2023 – The December Servicing Guide update advises large non-depository sellers/servicers of updates to the frequency of financial reporting requirements and provides other miscellaneous updates.

Servicing Guide - PDF Version  (December 20, 2023)