1 In case You Missed It Summary of Selling Guide/Policy Communications in 2016. December 19, 2016. This job aid summarizes recent Selling Guide and related policy updates, clarifications, or other supporting communications. It provides links to related resources as applicable. fannie Mae made many of these changes or communications in direct response to lender feedback requesting that we simplify or clarify policies or processes. Did you know that fannie Mae's Quarterly Compass is another source of information for lenders about process, policy, and technology updates? Missed anything from last year? View In case You Missed It 2015 for more summaries. Most recent items listed first SEL = Selling Guide Announcement LL = Lender Letter (Lender Letters typically do not announce policy changes and instead reinforce existing policy or provide related information.)
2 # Publication (Date) Topic Description / Resources SEL-2016-09 Enhanced the DU validation service to offer validation of employment and asset data. 50 DU Validation Service (12/06/2016) DU Validation Service web page SEL-2016-09 Property Value Offered enforcement relief on representations and warranties related to property value for 49 Representations and certain properties. (12/06/2016) Warranties SEL-2016-09 Property Inspection Waiver Removed the $75 fee for PIWs. 48. (12/06/2016) (PIW) Fee SEL-2016-09 Disclosure of Information to Clarified when the appraiser must be advised of updates to the sales contract, and 47. (12/06/2016) Appraisers Clarified circumstances that warrant updates to the appraisal. SEL-2016-09 Updated the Selling Guide to replace MBS pool purchase contract process with PE MBS. 46 Pricing & Execution MBS.
3 (12/06/2016). Updated the Selling Guide to require lenders to SEL-2016-09 Manufactured Housing in o record a deed of trust describing the manufactured home and the land to which it is affixed, 45. (12/06/2016) Mississippi and o note the lien on the certificate of title. 2016 fannie Mae. Trademarks of fannie Mae. 1 of 8. # Publication (Date) Topic Description / Resources Confirmed the maximum loan limits issued by the Federal Housing Finance Agency (FHFA) for LL-2016-05 Conventional Loan Limits for 44 conventional loans acquired by fannie Mae in 2017. (11/23/2016) 2017. Loan Limits web page Introduced the DU validation service for income o Lenders must opt in to participate SEL-2016-08 o Certain representation and warranty relief may apply 43 DU Validation Service Designated vendors: (10/24/2016). The Work Number from Equifax.
4 Equifax 4506-T Tax Transcript Service DU Validation Service web page Made PIW available to all lenders SEL-2016-08 Property Inspection Waivers o No prerequisites or registration required 42. (10/24/2016) (PIW) o Available in DU for eligible refinance transactions PIW web page Enhanced HomeReady to: o Increase maximum LTV, CLTV, HCLTV from 95% to 97% for certain loan types SEL-2016-08 HomeReady o Allow temporary buydowns and ARMs on three to four-unit properties 41. (10/24/2016) Enhancements o Provide additional benefits for certain loans where a borrower received customized one-on- one assistance from a HUD-approved nonprofit counseling agency HomeReady web page SEL-2016-08. 40 Site Condos Removed requirement for project reviews for site condos when certain conditions are met (10/24/2016). New fannie Majors Option Introduced a three-month seasoning option for the fannie Majors program.
5 With this new option, SEL-2016-08. 39 and Changes to MBS mortgages may be no older than three months as of the security issue date. (10/24/2016) Parameters Modified MBS pooling parameters SEL-2016-08. 38 Garnishments Removed requirement to pay off garnishments prior to closing. (10/24/2016). 2016 fannie Mae. Trademarks of fannie Mae. 2 of 8. # Publication (Date) Topic Description / Resources Co-Borrower Self- SEL-2016-08 Clarified that lenders do not need to evaluate a co-borrower's self-employed income if the income 37 Employment Income (10/24/2016) is not used to qualify the borrower Evaluation Updated the Selling Guide to reflect the extension of the Home Affordable Refinance Program to SEL-2016-08 Extension of DU Refi Plus . 36 September 30, 2017. (10/24/2016) and Refi Plus . HARP FAQs Desktop DU Validation Service Underwriter Implementation of the DU Updates to the Property Inspection Waiver Version Version Update the 35 December Update Property Value Representations and Warranties Weekend of December 10, Release Notes 2016 HomeReady Enhancements (10/24/2016) Updates to Align with the Selling Guide Updated the Selling Guide to describe the IDR process Added references to.
6 O the Appeal and Independent Dispute Resolution Processes document that describes the SEL-2016-07 Independent Dispute steps and legal requirements regarding the appeal, impasse, management 34 (08/30/2016) Resolution (IDR) escalation, and IDR processes o a retainer agreement to be completed and submitted, when applicable SEL-2016-01, Lender Selling Representations and Warranties Framework Independent Dispute Resolution Updated the Selling Guide to reflect changes described in the DU Version Release Notes related to: SEL-2016-07 o casefiles where no borrower has a credit score 33 Nontraditional Credit Policies (08/30/2016) o casefiles where a borrower(s) has a credit score and another borrower has no credit score Revised certain requirements for manually underwritten loans Simplified requirements for documenting nontraditional credit sources SEL-2016-07 Liability Insurance Removed project-level liability coverage requirement on new attached PUD projects 32 (08/30/2016) Requirements Added an exception for liability insurance on certain two- to four-unit condo projects 2016 fannie Mae.
7 Trademarks of fannie Mae. 3 of 8. # Publication (Date) Topic Description / Resources SEL-2016-07 Substituting Mortgage Loans Removed option of substituting mortgages in lieu of repurchase. 31 (08/30/2016) in MBS. SEL-2016-07 Updated anti-money laundering requirements to reference 31 Part 1020. 30 Compliance with Laws (08/30/2016). Selling Notice Extension of DU Refi Plus Extended Home Affordable Refinance Program (HARP) to September 30, 2017. 29 (08/25/2016) and Refi Plus . Removed restrictions so that occupant borrowers may own other residential properties Removed homeownership education requirement for LCOR. Removed landlord education requirement for 2- to 4-unit properties Removed references to post-purchase early delinquency counseling requirements SEL-2016-06. 28 HomeReady Updates Allowed homeownership education from HUD-approved Community Seconds or Down Payment (07/26/2016).
8 Assistance Program providers Identified future updates Published new form: Certificate of Pre-purchase Housing Counseling ( fannie Mae Form 1017). Revised MI Forms for MassHousing Mortgage Insurance Fund effective October 1, 2016. Lender Letter LL- Updated Approved Mortgage Insurance Forms list 27 2016-04 Mortgage Insurance Updates (07/26/2016) Updated Approved Insurers list to remove inactive insurers and provide instructions on how to identify Arch Mortgage Insurance Company at loan delivery Simplified the income limits by eliminating the 80% limit. The limit for all properties (except those SEL-2016-05 HomeReady 26 located in low-income locations) will be 100% of area median income. Properties in low-income (06/28/2016) Income Limits areas are not subject to income limits. Removed documentation requirements to confirm the borrower's ability to access business Business Income and income SEL-2016-05.
9 25 Verbal VOE for Self- Provided methods for measuring business liquidity (06/28/2016). Employed Borrowers Extended the timeframe to obtain a verbal verification of employment for self-employed borrowers from 30 days to 120 days prior to the Note date 2016 fannie Mae. Trademarks of fannie Mae. 4 of 8. # Publication (Date) Topic Description / Resources SEL-2016-05 Eliminated the policy on restructured mortgages. Standard policies apply for refinance and modified 24 Restructured Loan Policy (06/28/2016) mortgages. SEL-2016-05 Mortgagee Clause on Removed the requirement for naming either a unit owner's lender or fannie Mae as the mortgagee 23. (06/28/2016) Project Insurance on a project's master policy. Revised Uniform Instruments for ARMs Required lenders to use the new fannie Mae and fannie Mae/Freddie Mac ARM notes and riders (revision date of 6/16) that prohibit the interest rate from going below the ARM's margin.
10 The updated instruments are posted at Single-Family SEL-2016-05 Legal Instruments Legal Documents. 22. (06/28/2016) Updated Revised the Wisconsin mortgage security instrument (Form 3050) in compliance with new state law that shortens the redemption period in foreclosure actions. This form is available at Single- Family Security Instruments. Clarified the requirements for modifying single-closing construction-to-permanent loans into Modifications of Single- permanent loans, including: SEL-2016-04. Closing Conversion of the loan terms that can be modified, 21 Construction-to-Permanent (05/31/2016) when re-underwriting is required, Loans the time period allowed to modify the loan (date of modification), and which legal documents related to the modification are required. Updated the Selling Guide to reflect changes described in the DU Version Release Notes related to: Risk factors (delinquent accounts; mortgage accounts; revolving credit utilization; public records, foreclosures, and collection accounts; inquiries; loan purpose; occupancy type; and self- employment).