Fannie Mae Announces Updates to Selling Guide

Fannie Mae recently issued Selling Guide Announcement (SEL-2025-09) to simplify mortgage processes and increase flexibility in its selling guide.  The updates:

• Provide lenders, of loans underwritten through Desktop Underwriter (DU), enforcement relief related to representations and warranties for certain undisclosed non-mortgage debts that surface after closing.  This applies to casefiles submitted or resubmitted on or after the weekend of November 15, 2025.
• Provide that credit documents, under single-closing construction-to-permanent loans converting to permanent financing, are now valid for up to 18 months at the time of conversion.
• Remove minimum credit score requirements for loans submitted to DU.  DU will instead rely upon its own comprehensive analysis of risk factors to determine eligibility.  This eliminates the required minimum credit score of 620 for one borrower or an average median score for multiple borrowers, for new casefiles created on or after November 16, 2025.
• Enable loans held in inter vivos revocable trusts to be immediately eligible for sale to Fannie Mae as eMortgages.