Fannie Mae issued Selling Guide Announcement SEL-2025-05 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Updated project review requirements to include projects that are terminating or involved in insolvency proceedings as ineligible projects for loans secured by units in condo projects and cooperative share loans secured by share ownership in a co-op project regardless of the project review type, including loans eligible for a waiver of project review;
- Clarified compliance with laws policy specific to the Bank Secrecy Act (BSA) and anti-money laundering (AML)-related requirements for lenders by clarifying that if a lender is not subject to the BSA’s AML provisions, the lender must establish a suspicious activity identification program that consists of internal policies, procedures, and controls to identify and report to Fannie Mae suspicious activity, including mortgage fraud, money laundering, terrorist financing, and related crimes;
- Updated DU loan casefile archival policy, specifically for single-closing construction-to-permanent transactions, announcing that loan casefiles submitted to DU with a Construction-to-Permanent Closing Type of Single-Closing will now be archived 540 days after the original casefile creation date, regardless of activity;
- Extended the timeframe to 18 months (previously 12 months) for creation of a new DU loan casefile for resubmission purposes after the initial closing of a single-closing C-to-P transaction on single-closing C-to-P transactions, when a DU loan casefile has been archived;
- Revised lender incentives policy by removing the maximum dollar amount for lender incentives;
- Updated electronic records, signatures, and transactions policy by requiring the loan to be delivered with the remote notarization indicator flag if the remotely notarized document is a security instrument or amendment to the security instrument; and
- Updated the list of Approved Mortgage Insurers and Related Identifiers to remove previously approved mortgage insurers and updated the Approved Mortgage Insurance Forms to add or revise each mortgage insurer’s Illinois Endorsement or Notice, revise Radian’s Signatory Change Endorsement, and delete two of Radian’s Address Change Endorsements.
Revisions related to project review requirements are effective for loan applications dated on or after September 30, 2025; however, if the lender becomes aware of any of these actions prior to the required implementation date, the lender must apply the new policy immediately and notify Fannie Mae’s Project Standards team within 5 business days (lenders are, however, encouraged to implement these changes immediately). Revisions related to Fannie Mae complying with laws policy specific to BSA and AML are effective October 2, 2025 (lenders are, however, encouraged to take advantage of this policy clarification immediately). All other revisions are effective July 2, 2025.
Click to view the Fannie Mae Selling Guide Announcement SEL-2025-05: https://www.tenaco.com/wp-content/uploads/2025/07/Fannie-Mae-Selling-Guide-Announcement-SEL-2025-05-07-02-25.pdf
