Fannie Mae Selling and Servicing Policy Archives

December 11, 2024 – In December, the Selling Guide has been updated to allow an energy report, when required for any HomeStyle® Energy mortgage, to be dated no more than 24 months before the note date; add additional exceptions to the borrower ownership requirement for a limited cash-out refinance application; encourage the use of home price indices and other market data to support overall value accuracy; clarify that for HomeStyle® Renovation Loan Agreement, both parties may execute the agreement at any time during the closing process with the agreement date matching the note date, and other miscellaneous updates.

Selling Guide - PDF Version (December 11, 2024)

Updated December 11, 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, including updated reporting requirements based on remittance type and clarifications on the timing for summary reporting mortgage loans.

Updated December 5, 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 2024.

November 26, 2024 - Fannie Mae loan limit values are increasing in 2025. The new loan limit for most of the country will be $806,500 — a 5.21% increase over the 2024 limit — and is effective for whole loans delivered to Fannie Mae and loans in MBS pools with issue dates on or after Jan. 1, 2025.

May 24, 2023 - this Notice specifies that we will require appraisal photographs for the main living areas of property interiors to include the living room, family room, dining room, all bedrooms, and all finished and unfinished areas of the basement for appraisals in loan applications dated on or after Sept. 1, 2023.

November 13, 2024 – The November Servicing Guide update clarifies that sellers and servicers are responsible for preventing, detecting and reporting mortgage fraud, and clarifies eMortgage servicing requirements. It incorporates the changes to reporting due date for summary reporting mortgage loans as well as other miscellaneous updates.

Servicing Guide - PDF Version  (November 13, 2024)

Updated November 13, 2024 - This Investor Reporting Manual (Manual) outlines Fannie Mae's requirements for the mortgage loan accounting system it uses for reporting on the status of one- to four-unit mortgage loans either held in its portfolio or pooled in an MBS. (The Fannie Mae investor reporting system is also used for multifamily mortgage loans that are in MBS pools). This Manual is incorporated into the Servicing Guide by reference. In the event that the Manual and the Servicing Guide are conflicting, the servicer must follow the requirements set forth in the Servicing Guide.

November 6, 2024 – In November, the Selling Guide has been updated to modernize special property eligibility and underwriting considerations for leasehold estates; revise our project review requirements related to properties secured by manufactured homes; update requirements related to the Market Area analysis of the appraisal report and add standardized definitions relevant to appraisal market areas to the Glossary; clarify that sellers and servicers are responsible for preventing, detecting, and reporting mortgage fraud, and other miscellaneous updates.

Selling Guide - PDF Version (November 6, 2024)

Updated October 2, 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.

September 11, 2024 – The September Servicing Guide update clarifies servicer responsibilities related to the charge-off and second lien consideration processes and submission requirements.

Servicing Guide - PDF Version  (September 11, 2024)

September 4, 2024 – In September, the Selling Guide has been updated to establish loan delivery requirements for lender-formed Green MBS and a Fannie Mae Green Majors® pool; remove, add, and replace certain terms in our appraisal practices policy to mitigate subjective terminology used in appraisal reports; and automate Desktop Underwriter® (DU®) review of the supplemental asset report to extend employment validation.

Selling Guide - PDF Version (September 4, 2024)

August 7, 2024 – In August, the Selling Guide has been updated to include revised policies and guidelines pertaining to rent credit with an option to purchase and rent-back credit and other miscellaneous updates.

Selling Guide - PDF Version (August 7, 2024)

August 6, 2024 – In May 2024, we issued Selling Guide Announcement SEL-2024-03 related to the development of a framework for lenders to review and respond to a borrower-initiated reconsideration of value (ROV). While lenders are encouraged to implement the ROV policy immediately, they must do so for loans with applications dated on or after the new effective date of October 31, 2024.

July 10, 2024 – The July Servicing Guide update clarifies expense reimbursement policies and provides other miscellaneous updates.

Servicing Guide - PDF Version  (July 10, 2024)

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)