Fannie Mae Selling and Servicing Policy Archives

Updated April 6, 2022 – This Lender Letter provides information about a new refinance option – RefiNow™ – that will enable more borrowers to refinance to a lower interest rate and reduce their monthly mortgage payment.

The Document Custodian Notice includes the following topic:
Revised Job Aid for review and certification of HomeStyle Renovation Loan Agreements

March 2, 2022 - The March Selling Guide update includes changes to single-close construction-to-permanent transaction requirements, adds Condo Project Manager™ (CPM™) status designations to align with the enhancements in the March 4 CPM release, and simplifies policy for the allowable interest rate permitted on a Community Seconds® transaction.

Selling Guide - PDF Version (March 2, 2022)

The Document Custodian Notice includes the following topic:

•  Job Aid for review and certification of HomeStyle Renovation Loan Agreements

February 9, 2022 - The February Servicing Guide update includes changes to Fannie Mae short sale and Fannie Mae Mortgage Release™ requirements, modifies certain time frames and processes for HomeStyle® Renovation mortgage loans, updates allowable foreclosure attorney fees and Mortgage Release™ document preparation costs, automates the submission of Form 200, and other miscellaneous updates.

Servicing Guide - PDF Version (February 9, 2022)

February 2, 2022 - The February Selling Guide update includes changes to allow desktop appraisals for certain purchase transactions, updates the HomeStyle® Renovation loan agreement, modifies certain time frames and processes for HomeStyle® loans, provides a loan-level price adjustment credit for HomePath® properties, simplifies documentation requirements for depository assets, clarifies reporting requirements related to anti-money laundering Bank Secrecy Act requirements, and more.

Selling Guide - PDF Version (February 2, 2022)

The Document Custodian Notice includes the following topic:

•  Independent Audit Requirements for Document Custodians (IARDC)
• Updated Single-Family Custody Operations Points of Contacts and Analyst Assignments List
• Updated Document Custodian QC Supplement Template

January 5, 2022 – This Lender Letter provides information about changes to loan-level price adjustments (LLPAs) that will apply to second home and high-balance mortgage loans. The updated LLPAs are effective for all whole loans purchased on or after April 1, 2022, and for loans delivered into MBS pools with issue dates on or after April 1, 2022.

Provides a summary of Selling Guide, Servicing Guide, and other policy related communications & updates issued in 2021.

December 15, 2021 - The December Selling Guide update modifies the definition of principal residence to include military service members on active duty, clarifies required documentation when a borrower has filed an extension with the IRS, expands allowable comparable sales for new (or recently converted) projects, establishes standard requirements for measuring and calculating gross living area, and more.

Selling Guide - PDF Version (December 15, 2021)

December 8, 2021 - This Servicing Guide update consolidates into the Selling Guide certain policies regarding insurance applicable to both lenders and servicers, updates various borrower-facing servicing forms and documents, retires Form 2002, clarifies subservicer eligibility to perform general servicing duties and responsibilities for HomeStyle® Renovation mortgage loans not associated with property renovation, and adds a link to the Mortgage Insurance Claims Portal.

Servicing Guide - PDF Version (December 8, 2021)

As interest rates continue to remain low, refinances are an attractive option for many borrowers. There are many reasons a borrower may be seeking to refinance – lowering the interest rate, lowering monthly payments, shortening the loan term, moving to a fixed-rate from an ARM, moving to a different ARM index, or taking equity out of the property. We offer several refinance options. 

November 30, 2021 - Fannie Mae loan limits are increasing in 2022. The new loan limit for most of the country will be $647,200 — an 18.05% increase over the 2021 limit — and is effective for whole loans delivered to Fannie Mae and loans in MBS pools with issue dates on or after Jan. 1, 2022.

November 17, 2021 - This Servicing Guide update revises servicer requirements regarding the initial inspection order date and clarifies servicer responsibilities for instructing mortgage insurers to release data to us pertaining to a certain population of mortgage loans.

Servicing Guide - PDF Version (November 17, 2021)

November 3, 2021 - The November Selling Guide update modifies and clarifies policies related to military personnel and leave and earnings statement, permits the delivery of loans previously modified following the application of a principal curtailment and recast of the principal balance, and provides other miscellaneous updates.

Selling Guide - PDF Version (November 3, 2021)

The Document Custodian Notice includes the following topics:

• Notification of Fannie Mae’s update to the Document Transfer Job Aid
• Notice of Upcoming Change to Unrecorded Assignments to Fannie Mae Requirement

October 20, 2021 - This Lender Letter provides notice of upcoming changes to our requirement for unrecorded assignments of mortgage for loans not registered with Mortgage Electronic Registration System, Inc. (MERS). Instead of this requirement, we are requiring a one-time delivery of limited powers of attorney (Form 520), which sellers/servicers are encouraged to submit now but must complete and deliver by March 1, 2022.

June 9, 2021 - (Republished Oct. 20, 2021) We previously communicated that the Federal Home Loan Bank of San Francisco (FHLBank) announced that it would cease publication of its 11th District Monthly Weighted Average Cost of Funds Index (COFI) after the publication of the Dec. 2021 COFI in Jan. 2022. In anticipation of this date, we are announcing our selection of a replacement index to be used for the servicing of legacy COFI mortgage loans, called the Enterprise 11th District COFI Replacement Index.