Fannie Mae issued Selling Guide Announcement SEL-20296-09 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:

• Removed the specific methods lenders must use to satisfy the verbal verification of employment requirement by allowing lenders to use a verification method that is reasonable, verifiable, and appropriate for the borrower’s employment or income type;
• Provided additional clarity to recent updates made to Chapter B3-3 (Income Assessment) by updating:
  • The income continuance requirement to reflect that income with a defined expiration date is expected to continue for at least 3 years from the application date instead of the Note date;
  • The employment offers or contracts requirement to reflect that acceptance of the fully executed and non-contingent offer or contract may be demonstrated through a signed agreement, written confirmation (e.g., email), or other verifiable means; and
  • The annuity, pension, and retirement policy by providing additional guidance for documentation requirements when the income begins after closing but prior to the 1st payment date;
• Expanded eligibility for Attorney Opinion Letters (AOLs) by removing the following 3 restrictions:
  • The requirement that AOLs be commonly accepted by private institutional investors in the local market;
  • The exclusion of Texas Section 50(a)(6) loans; and
  • The exclusion of loans executed under a power of attorney;
• Clarified that a tenant right of first refusal does not make a loan ineligible when the right arises from a statute or local ordinance rather than from a recorded instrument affecting the property (recorded rights of first refusal remain subject to our existing Selling Guide requirements); and
• Specified verbal verification of employment requirements related to Schedule K-1 < 25% income that:
  • Lenders must complete a verbal verification of employment for borrowers using Schedule K-1 income from a business in which they have less than 25% ownership to qualify;
  • When the borrower also receives employment-related income from the same business, the applicable verification requirements depend on the borrower’s percentage of ownership; and
  • A verbal verification of employment is not required when rental income is the ONLY income reported on Schedule K-1.

Revisions related to Schedule K-1 < 25% income is effective for loan applications dated on or after December 2, 2026. All other revisions are effective October 7, 2026.

Click to view the Fannie Mae Selling Guide Announcement SEL-2026-09: https://www.tenaco.com/wp-content/uploads/2026/10/Fannie-Mae-Selling-Guide-Announcement-SEL-2026-09-10-07-26.pdf