The newly-updated Fannie Mae November Selling Guide now bars job offers or contracts for future employment from family members or interested parties involved in a transaction.
“We revised our policy to make it clear that when a borrower is scheduled to begin new employment under the terms of an employment offer or contract, the offer or contract cannot be for employment by a family member or interested party to the transaction,” the Selling Guide update explained. “This requirement applies regardless of whether a paystub is obtained prior to loan delivery.”
“Lenders should have effective and fully documented written policies and procedures that ensure that its staff and any outsourcing and third-party vendors used by the seller consistently comply with our requirements,” Fannie Mae said.
Fannie Mae also adds to a change implemented to the Selling Guide this past May, where the GSE updated its shared appreciation policy to match industry best practices.
Now, the company has further clarified that a shared appreciation payment can be accelerated if there’s an unauthorized property transfer or change in occupancy.
“It also clarifies what portion of shared appreciation proceeds must be applied against the first mortgage loan,” the update states.
Lenders are encouraged to implement the changes announced in the update immediately but must complete the change for all loans with application dates on and after Feb. 1, 2024.