Recently updated Fannie Mae The November Sales Guide aims to update special property eligibility and lease underwriting considerations, and revise the government-sponsored enterprise (GSE) project review requirements for protected manufactured home properties.
The Marketing Guide also revised the requirements “related to the analysis of the market place of the valuation report and added[ed] general definitions corresponding to the test market areas in the list.” It also clarifies that brokers and employees are “responsible for preventing, detecting, and reporting mortgage fraud.”
Regarding the lease provisions, the GSE revised its eligibility requirements “to provide clarifications and revisions to lease requirements, to address conditions related to leases in projects, and to include co-ops as eligible property types,” according to the update.
This included the addition of a “specific list of eligible property types, definitions, and exceptions to the lease,” and clarification of lease terms related to enforcement of the original lease, appraisal and title insurance.
The guideline also specified that for manufactured housing within a major project, the homeowners association “must be the tenant.” It also reviews certain lease requirements such as those for automatic notices and treatment options and subject matter integration. These provisions come into effect in March 2025.
The guide also added project reviews for manufactured homes, including those available in rental properties.
“To facilitate the lending of manufactured housing to projects, we clarified a policy to resolve inconsistencies related to whether a manufactured home needs to be submitted to the Project Eligibility Review Service (PERS),” the update reads. It stressed that homes produced in cooperative projects “are always the types of projects that are not eligible and cannot be delivered to Fannie Mae.” This policy is effective immediately.
There is also an appraisal section. Fannie Mae works with its GSE counterpart Freddie Mac to revise the requirements related to the “Marketplace analysis of the inspection report and use established definitions of the terms ‘Neighborhood’ and ‘Marketplace.'” Fannie urges sellers to implement these changes immediately, but they must be in place by February 2025.
Finally, the update aims to clarify obligations when cases of mortgage fraud are detected.
“Dealers and employees are responsible for preventing, detecting, and reporting mortgage fraud,” the update said. “Dealers and employees are reminded to have policies and procedures in place to ensure the integrity of information and procedures at all stages of the loan’s lifecycle, from application through service.”
For any vendors or services that do not comply with this requirement, compliance is encouraged immediately but must be completed by March 2025.
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