March 8, 2023

Lender Letter LL-2023-02 – Private Transfer Fee Covenants: Exception for Certain Shared Equity Transactions

Effective for loans with note dates on or after July 1, 2023, shared equity loans that are secured by properties subject to private transfer fee covenants will now be eligible for sale to Fannie Mae if they meet certain conditions. Loans with private transfer fee covenants are currently prohibited by the Selling Guide, unless permitted by the Private Transfer Fee Regulation.

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