Fannie Mae Announces Selling Guide Updates

Fannie Mae

On August 26, Fannie Mae issued Selling Guide Announcement SEL-2014-11, which advises that Fannie Mae is retiring two standard Fannie Mae ARM plans—ARM Plan 1445 and ARM Plan 1446—because certain revisions to Regulation Z and the absence of any deliveries of loans under those ARM plans in recent years. The announcement also advises sellers that (i) the requirement to confirm that potential employees are not on the Suspended Counterparty Program list has been added to Fannie Mae’s requirements for lender hiring practices and to the procedures that third party originators must follow; (ii) Fannie Mae has amended the Guide to clarify that its policy with regard to requirements pertaining to lender review of disputed tradelines applies to manually underwritten loans; and (iii) Fannie Mae is clarifying the policy regarding the allowable age of credit documents to specify that when consecutive documents are in the loan file, the most recent document is used to determine the age.