Skip to main content

Fannie Mae Selling Guide Update

Fannie Mae recently issued Selling Guide Announcement SEL-2021-07 regarding Selling Guide policy changes. The Fannie Mae Selling Guide has been updated to include the following:

  • The Prearranged Refinancing Agreements section under B2-1.3-04, Prohibited Refinancing Practices has been updated to clarify that a “transaction is not eligible as a limited cash-out refinance if the borrower completed a cash-out refinance transaction with a note date 30 days or less prior to the application date of a new refinance secured by the same property.”


  • A new policy regarding Credit Card Reward Points has been added as  B3-4.3-16, Credit Card Financing and Reward Points to provide that Fannie Mae permits credit card reward points to be used as acceptable funds towards closing costs, down payment, and financial reserves if the reward points are converted to cash prior to the closing of a loan.


  • Condo and co-op properties added as a factor in the DU risk assessment, as previously implemented in DU Version 11.0.  (See B3-2-03, Risk Factors Evaluated)


  • Clarification added to existing policy regarding incentives to the borrower that payments to pay off a portion of a loan being refinanced are only permitted on high-LTV refinance transactions.  Fannie Mae notes that the temporary pause to acquisitions of high LTV loans is still currently in effect. (See B3-4.1-02, Interested Party Contributions)



Policy changes related to prearranged refinance arrangements are effective for refinance transactions with applicate dates on or after September 1, 2021.  All other revisions are effective immediately.