Fannie Mae issued Selling Guide Announcement SEL-2025-09 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Expanded Day 1 Certainty offerings to include terms of enforcement relief of representations and warranties related to undisclosed non-mortgage debt for certain loans underwritten through DU (mortgage-related debt (including HELOCs and second liens) is excluded from eligibility for relief);
- Expanded eligibility criteria for the extended age of credit documents used when converting a single closing construction-to-permanent loan to permanent financing by:
- Extending the exception for the age of credit documents to be greater than four months to up to 18 months at the time of conversion; and
- Removing the requirement for a minimum representative credit score to be eligible for the exception.
- Announced that minimum credit score requirements will no longer apply to loans submitted to Desktop Underwriter (DU), specifically, DU will no longer apply a minimum credit score but will rely on its own comprehensive analysis of risk factors to determine eligibility. In addition to these revisions, Fannie Mae has updated DU nontraditional credit documentation and homebuyer education requirements to no longer rely on credit scores (instead, DU will issue a message when lenders must establish a nontraditional credit history and/or complete homebuyer education when no borrower has at least 1 credit account or installment account reported on the borrower’s credit report); and
- Removed the restriction for loans held in inter vivos revocable trusts in Selling Guide section B8-8-01 (General Information on eMortgages).
Revisions related expanded Day 1 Certainty offerings will be implemented in DU Version 12.0 for eligible loan casefiles submitted or resubmitted to DU on or after the weekend of Nov. 15, 2025. Revisions related to the minimum representative credit score requirement of 620 for loan casefiles for 1 borrower and minimum average median credit score requirement of 620 for more than 1 borrower will be removed for new loan casefiles created on or after Nov. 16, 2025 (all other changes will apply to loan casefiles submitted or resubmitted on or after the weekend of Nov. 15, 2025). Revisions related to expanded eligibility criteria for the extended age of credit documents used when converting a single closing construction-to-permanent loan to permanent financing and revisions related to removal of the restriction for loans held in inter vivos revocable trusts in Selling Guide section B8-8-01 are effective November 5, 2025.
Click to view the Fannie Mae Selling Guide Announcement SEL-2025-09: https://www.tenaco.com/wp-content/uploads/2025/11/Fannie-Mae-Selling-Guide-Announcement-SEL-2025-09-11-05-25.pdf
