Fannie Mae issued Lender Letter LL-2023-02, permitting shared equity loans subject to private transfer fee covenants. Per the Lender Letter, shared equity loans secured by properties subject to private transfer fee covenants are now eligible for sale to Fannie Mae if certain conditions are met. Shared equity loans secured by properties without private transfer fee covenants are not subject to the Lender Letter. Loans with private transfer fee covenants that do not meet the conditions set forth in the Lender Letter remain subject to the prohibition on private transfer fee covenants outlined in the Selling Guide. The Lender Letter applies to loans with note dates on or after July 1, 2023.
Click to view the Fannie Mae Lender Letter LL-2023-02: https://www.tenaco.com/wp-content/uploads/2023/03/Fannie-Mae-Lender-Letter-LL-2023-02-03-08-23.pdf
