Fannie Mae issued Selling Guide Announcement SEL-2018-01 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, monthly payments due under an IRS income tax installment agreement may now be included in a borrower’s debt-to-income ratio (in lieu of requiring payment in full) when: there is no indication that a Notice of Federal Tax Lien has been filed against the borrower; the lender obtains an approved IRS installment agreement that contains the terms of repayment; and the lender obtains acceptable evidence the borrower is current with respect to payments under the installment plan. The Announcement also sets forth updated policy with respect to detached condo projects. Pursuant to the updated policy: construction-to-permanent financing is now permitted in connection with detached condo projects (was previously prohibited); references to site condos are removed so that all detached condos are treated the same; Special Feature Code 588 and project code V are required for all detached condo loans at delivery; and Special Feature Code 917 was retired (previously required for site condos). In addition, under the Announcement: lenders must document the deficiencies that are the basis for ordering a second appraisal and must select the most reliable appraisal (rather than always using the second appraisal); Form 360 (Certificate of Authority, Incumbency, and Specimen Signatures) is redesigned and the process for submitting an executed Form 360 is enhanced; and a field review appraisal is no longer required with respect to properties valued at $1,000,000 or more where the LTV/CLTV/HCLTV ratio exceeds 75%. The redesigned Form 360 is effective March 1, 2018. All other changes are effective immediately.
Click here to view the Fannie Mae Selling Guide Announcement SEL-2018-01
