Fannie Mae issued Selling Guide Announcement SEL-2025-07 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Clarified the term “appraisal waiver” will no longer be used in conjunction with “value acceptance” in the Selling Guide, as a result, the following updates were implemented:
- Instances where “appraisal waiver” appeared independently were revised to “value acceptance” and
- Where the term “value acceptance (appraisal waiver)” was used, the parenthetical reference was removed;
- Revised reconsideration of value (ROV) policy as follows:
- Removed the requirement to provide an initial ROV disclosure at the time of loan application. The disclosure must be provided to the borrower along with delivery of the appraisal report, and
- Simplified documentation requirements to require only documentation related to the outcome (not initiation) of the ROV to be retained in the loan file;
- Expanded eligibility to include single-width MH Advantage homes;
- Recognized Freddie Mac CHOICEHome as an MH Advantage manufacturing and design equivalent as evidenced by the CHOICEHome label;
- Updated requirements to clarify fee simple ownership of a security property held in a life estate under property law as an eligible form of property ownership and by clarifying characteristics of similar arrangements, such as “lady bird deeds” and “transfer on death deeds”, do not qualify as life estates. In addition, when the security property is held in a life estate,
- The life tenant must be a borrower;
- One or more of the remaindermen may also be co-borrowers; and
- Both the life tenant and all remaindermen must sign the security instrument to convey their respective interests in the property.
All revisions went into effect September 3, 2025.
Click to view the Fannie Mae Selling Guide Announcement SEL-2025-07: https://www.tenaco.com/wp-content/uploads/2025/09/Fannie-Mae-Selling-Guide-Announcement-SEL-2025-07-09-03-25.pdf
