Fannie Mae Selling and Servicing Policy Archives

May 26, 2021 - This Lender Letter provides details about underwriting and loan eligibility policies, certain Desktop Underwriter® implementation policies, and a change to our high LTV refinance product to align with the Consumer Financial Protection Bureau’s Revised Qualified Mortgage Rule under the Ability to Repay regulation as required by 2021 amendments to our senior preferred stock purchase agreement. 

During the weekend of Jun. 5, the 2021 AMIs will be implemented in Desktop Underwriter® (DU®) and published on our website for use with manually underwritten loans. DU will apply the 2021 limits to new DU loan casefiles created on or after Jun. 5, 2021. Loan casefiles created prior to Jun. 5, 2021 will continue to use the 2020 limits. For manually underwritten loans, lenders are encouraged to use the 2021 limits immediately, but are required to use them for loans with application dates on or after Jul. 1, 2021.

We are providing advance notice to servicers that effective on July 19, 2021, Fannie Mae will retire its Automated Property Service™ (APS). 

May 5, 2021 – This Selling Guide update includes: enhanced post-closing quality control collateral risk assessment requirements; simplified pool closing process for all MBS settlements; updated Desktop Underwriter® casefile archive policy; and a miscellaneous update to address tax filing published by the IRS.

Selling Guide - PDF Version (May 5, 2021)

Updated April 21, 2021 - this Lender Letter provides temporary flexibilities to our appraisal requirements.

April 8, 2021 – this Lender Letter provides notice that loans we purchase with application dates on and after July 1, 2021 must meet the Consumer Financial Protection Bureau’s Revised Qualified Mortgage Rule under the Ability to Repay regulation. Additional policy and implementation details will be provided in a future communication.

April 7, 2021 - April's Selling Guide update includes: new forms for Fannie Mae review of co-op projects; revised Master Terms and Conditions to the Software Subscription Agreement; clarification of lender responsibilities related to gift funds identified in the Desktop Underwriter® validation service; eligibility of loans secured by second home and investment properties, incorporating the requirements announced in a prior Lender Letter; and a miscellaneous process change.

Selling Guide - PDF Version (April 7, 2021)

The Document Custodian Notice includes the following topics:

• Guidance for the 2021 Agreed Upon Procedures (AUP)

Servicing Guide - PDF Version (March 10, 2021)

March 10, 2021 - this Lender Letter updates our policies to require that any loan secured by a second home or investment property be delivered as a Desktop Underwriter® (DU®) loan with an Approve/Eligible recommendation (with one exception).

March 10, 2021 - the March Servicing Guide update adjusts servicer requirements for charge-off property valuation requests; incorporates a procedural change for requesting reimbursement of recording costs for mortgage loan satisfactions; clarifies the approval process to pay third parties out of insurance loss proceeds; and makes other miscellaneous updates.

Selling Guide - PDF Version (March 3, 2021)

March 3, 2021 - March's Selling Guide update revises power of attorney eligibility and documentation requirements, removes references to the Servicing Execution Tool™ ahead of the transition to Servicing Marketplace®, updates the list of risk factors evaluated by Desktop Underwriter® , and aligns the definition of planned unit development across the Guide.

February 17, 2021 - this Lender Letter updates the MassHousing Mortgage Insurance Fund’s Loan Loss Reserve Agreement, Commitment/Certificate, and Mortgage Payment Protection Endorsement Forms as well as the list of Approved Mortgage Insurance Forms.

The Document Custodian Notice includes the following topics:

• Updated Fannie Mae Quality Control (QC) Template and Supplement
• Update of the Active Document Custodians list for 2021

Selling Guide - PDF Version (February 3, 2021)

February 3, 2021 - February's Selling Guide update simplifies the verification requirements related to seasonal and secondary income, updates the seller/servicer post-purchase adjustment (PPA) process to require the use of the PPA form, and removes references to lenders authorizing release of MI data to us.

February 3, 2021 - this Lender Letter provides advance notice that we will cease purchasing Constant Maturity Treasury (CMT)-indexed ARMs later this year. While the CMT index is not going away, we will no longer acquire loans based on this index.

January 20, 2021 - the January Servicing Guide update incorporates LL-2020-13, which extended automatic reclassification triggers from four to 24 months for most delinquent MBS mortgage loans; eliminates the requirement for reporting a delinquency status code for a disaster payment deferral if the mortgage loan is brought current; and updates our policies on remote online notarizations for the purpose of servicing or modifying a mortgage loan. 

Servicing Guide - PDF Version (January 20, 2021)

The Document Custodian Notice includes the following topics:

• Updated Annual Statement of Eligibility for Document Custodians (Form 2001)
• Annual review of Fannie Mae Active Document Custodians

January 6, 2021 – This Lender Letter reiterates lenders’ responsibilities for appraisal review and for compliance with Appraiser Independence Requirements; provides examples of appraisal findings and defects; suggests best practices for lenders’ appraisal-related underwriting and quality control processes; and points out resources to help lenders manage appraisal risk efficiently and effectively.

Provides a summary of Selling Guide, Servicing Guide and other policy related communications & updates issued in 2020.