Fannie Mae recently announced the publication of the completely updated 2006 Selling Guide incorporating several Announcements, a Letter to Lenders, and some new policy or procedural changes.

Included in the new updates are;

• Revision of lender approval requirements for lenders who sell or service cooperative share mortgage loans.
• Revision of  policies concerning the termination of servicing rights.
• Clarification of policies concerning when lenders may (or must) repurchase a loan from our portfolio or their MBS pool, and our removal of delinquent special servicing MBS loans by reclassification of such loans as Fannie Mae portfolio loans.
• Explanation of lenders are responsible for reporting the cancellation of any part of the borrower's indebtedness to the U.S. Internal Revenue Service (IRS).
• Additional language to this Section that prohibits lenders from encouraging a borrower to refrain from making payments on the borrower's mortgage loan as a means of making the loan eligible for repurchase from an MBS mortgage pool.
• Update on rating requirements for hazard insurance carriers.

To view the transmittal letter advising of the changes please click on the following link

January 2006 Transmittal Letter

To access the Updated Selling Guide via AllRegs please click on the following link

Fannie Mae Single Family Selling Guide