Fannie Mae Announcement SEL-2026-07 (August 5, 2026) — Selling Guide Update
Fannie Mae Announcement SEL-2026-07 (August 5, 2026) — Selling Guide Update. Full verbatim text, substring-verified against snapshot ee705fbdc515fb79.
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Verbatim provisions from Fannie Mae Announcement SEL-2026-07 (August 5, 2026) — Selling Guide Update — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Fannie Mae Announcement SEL-2026-07 (August 5, 2026) — Selling Guide Update
© 2026 Fannie Mae SEL-2026-07 Page 1 of 4 Selling Guide Announcement (SEL-2026-07) Aug. 05, 2026 The Selling Guide has been updated to include changes to the following: • Incorporation of LL-2026-03, Updates to Project Standards & Property Insurance Requirements: incorporating previously communicated changes into the Selling Guide • PERS requirements for manufactured housing with deed restrictions and single-section units: simplifying review requirements for certain affordable housing types • Lease term requirements for ground lease co-ops: clarifying lease term requirements for eligible ground lease co-op projects • 12-loan minimum requirement: removing minimum loan sale requirement for maintaining seller approval • Miscellaneous updates: o eMortgage technical requirements for Inter Vivos mortgages o Authorized user tradelines o Green MBS View the list of impacted topics. Incorporation of LL-2026-03, Updates to Project Standards & Property Insurance Requirements We updated the Selling Guide to incorporate most of the policy changes communicated via Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements. The following guidance applies specifically to the project standards updates: • New standards for required reserves for projects will not be incorporated into the Selling Guide until after Jan. 4, 2027, when this change goes into effect for new loan applications. • Despite the revision to Delivery Requirements in B4-2.1-01, General Information on Project Standards, when delivering loans eligible under the Limited Review Process based on loan application date before Aug. 3, 2026, lenders must continue to use Project Type Code Q Limited Review – Established condo project, as applicable. The following guidance applies specifically to the property insurance updates: • We made minor edits to align property insurance requirements for HomeStyle ® Renovation and HomeStyle ® Refresh mortgage with these updates. • To improve clarity and flow when incorporating these policy updates, some content in Chapter B7-3, Property and Flood Insurance, has been reorganized. No additional policy changes were made. • The Servicing Guide will be updated on Aug. 12, 2026, with related property insurance requirements specific to servicers only. Effective: Unless otherwise noted above, all policy changes are already effective in accordance with the Lender Letter. © 2026 Fannie Mae SEL-2026-07 Page 2 of 4 PERS requirements for manufactured housing with deed restrictions and single-section units We updated Project Eligibility Review Service (PERS) requirements for manufactured housing to streamline eligibility for certain condo and PUD projects. Updates include: • Lender-delegated Full Review for new condo projects with manufactured homes, and new or established condo projects with single-section units and/or eligible deed/resale restrictions, and • Waiver of Project Review for new and established manufactured home PUD projects with eligible deed/resale restrictions. Lenders must continue to complete a PERS submission for manufactured homes subject to community land trust, ground lease, or shared equity arrangements. These changes are anticipated to reduce costs and cycle times related to the PERS submission process, and support expanded access to affordable housing, including age-restricted manufactured housing communities. Effective: These policy changes are effective immediately. Lease term requirements for ground lease co-ops The Selling Guide requires a ground lease term to extend at least five years beyond the loan maturity date. Many co-op ground leases, however, include renewal or extension options that cannot be exercised by co-op corporations until late in the lease term, making it difficult to meet this requirement. Some states now allow co-op corporations to exercise renewal or extension options earlier than the lease otherwise permits. For example, New York legislature recently enacted a law permitting certain co-op corporations to renew or extend eligible ground leases before the timing specified in the lease. For co-op projects located in jurisdictions where applicable state law permits the early exercise of ground lease renewal or extension options, lenders may accept the exercised renewal or extension to determine compliance with the minimum remaining lease term requirement if all the following apply: • The resulting lease term meets Selling Guide requirements. • The lender obtains written confirmation from either the ground lessor or legal counsel to the co-op corporation, confirming that the early renewal or extension: o was exercised in accordance with the lease and applicable law, and o is binding on the ground lessor. Effective: These policy changes are effective immediately. 12-loan minimum requirement We updated the Selling Guide to eliminate the minimum loan sale maintaining seller approval. Sellers must continue to meet the requirements in A4-1-01, Maintaining Seller/Servicer Eligibility and have the ongoing capacity to originate and sell loans in accordance with their Lender Contract. Effective: This policy change is effective immediately. © 2026 Fannie Mae SEL-2026-07 Page 3 of 4 Miscellaneous Updates E-2-04, Signature Requirements for Mortgages to Inter Vivos Revocable Trusts: We made updates to refer to eMortgage Technical Requirements for additional information regarding eNote loans with inter vivos trusts, which include the limitation that only one inter vivos trust can be represented on an eNote. B3-5.3-09, DU Credit Report Analysis and B3-6-05, Monthly Debt Obligations: We clarified the treatment of authorized user tradelines for loans that receive a DU Approve/Eligible recommendation, and lender requirements for excluding certain debts paid by others from the borrower’s recurring monthly obligations and the DTI ratio. C1-2-05, Delivering Green MBS to Fannie Mae and C3-6-01, Parameters for Pooling Loans Into Fannie Majors: In 2024, Fannie Mae expanded its Selling Guide policies to support the issuance of whole loan and lender-formed Green MBS pools. Effective immediately, we are discontinuing Single-Family Green MBS issuance and have removed all related policies from our Guide. Lenders may contact their Fannie Mae Account Team if they have questions about this Announcement. Have guide questions? Get answers to all your policy questions, straight from the source. Ask Poli. © 2026 Fannie Mae SEL-2026-07 Page 4 of 4 Impacted Topics *Indicates topics renumbered as a result of deletions. Section of the Announcement Updated Selling Guide Topics (Dated Aug. 05, 2026) Incorporation of LL-2026-03 • B4-2.1-01, General Information on Project Standards • B4-2.1-02, Waiver of Project Review • B4-2.1-03, Ineligible Projects • B4-2.2, Project Eligibility o Limited Review Process (DELETED) • B4-2.2-01, Full Review Process* • B4-2.2-02, Full Review: Additional Eligibility Requirements for Units in New and Newly Converted Condo Projects* o Geographic-Specific Condo Project Considerations (DELETED) • B4-2.2-04, Project Eligibility Review Service (PERS)* • B5-3.2-05, HomeStyle Renovation Mortgages: Completion Certification • B5-3.3-01, HomeStyle Refresh for Improvements on Existing Properties • B7-3, Property and Flood Insurance • B7-3-02, Property Insurance Requirements for One- to Four-Unit Properties • B7-3-03, Master Property Insurance Requirements for Project Developments • B7-3-04, Property Insurance Requirements for Individual Units in a Project Development • B7-3-07, Evidence of Property Insurance • B7-4-01, General Liability Insurance Requirements for Project Developments • B7-4-02, Fidelity/Crime Insurance Requirements for Project Developments PERS Requirements for MH with deed restrictions and single-section units • B4-2.1-01, General Information on Project Standards • B4-2.1-02, Waiver of Project Review • B4-2.2-01, Full Review Process* • B4-2.2-04, Project Eligibility Review Service (PERS)* • B4-2.3-01, Eligibility Requirements for Units in PUD Projects • B5-5.2-02, Loans with Resale Restrictions: Eligibility, Collateral and Delivery Requirements Lease term requirements for ground lease co-ops • B2-3-03, Special Property Eligibility and Underwriting Considerations: Leasehold Estates 12-loan minimum requirement • A4-1-01, Maintaining Seller/Servicer Eligibility
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