Fannie Mae issued Selling Guide Announcement SEL-2026-05 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Revised requirements related to loans closed using remote online notarization (RON), specifically:
- Removing the requirement for lenders to maintain, or cause to be retained, the video recording of the remote notarial ceremony for loans closed using RON;
- Requiring lenders to ensure the RON platform used for loan closings complies with industry standards pursuant to the MISMO Remote Online Notarization Standards Version 2.0 (Draft) (except for the Identification and Authentication section); and
- Requiring lenders to retain the RON audit trail as part of the electronic loan file delivered to Fannie Mae and transfer it to the servicer, consistent with existing electronic records and attribution requirements;
- Clarified the use of DU resubmission tolerances when modifying the interest rate and loan amount related to single-closing construction-to-permanent loan modifications by allowing sale of the loan with eligible modified terms (such as, loan amount and interest rate), without requiring resubmission to Desktop Underwriter;
- Modified borrower monthly debt obligation requirements by allowing the lender to use the monthly payment amount in a Federal Income Tax Installment Agreement when calculating monthly debt obligations, if the lender obtains:
- A copy of the IRS approved installment agreement showing the monthly payment and the total amount owed, and evidence the borrower is current on payments (if the Federal Income Tax Installment Agreement has been IRS approved); or
- A copy of the application for the IRS installment agreement showing repayment terms, monthly payment, and the total amount owed (if the Federal Income Tax Installment Agreement is still pending IRS approval); and
- Updated eligibility guidance for condop projects (which are defined as co-op projects within a condo/co-op (condop) development) and clarified project eligibility standards and documentation requirements that apply specifically to condop projects.
Revisions related to eligibility guidance for condop projects are effective with new loan applications on or after Aug. 6, 2026 (lenders, however, may incorporate these policy changes into the project review process immediately). All other revisions are effective May 6, 2026.
Click to view the Fannie Mae Selling Guide Announcement SEL-2026-05: https://www.tenaco.com/wp-content/uploads/2026/05/Fannie-Mae-Selling-Guide-Announcement-SEL-2026-05-05-06-26.pdf
