20-58: Fannie Mae SEL 2020-05, Freddie Mac Bulletin 2020-36 and FHA Mortgagee Letter 2020-28
Fannie Mae SEL 2020-05 and Freddie Mac Bulletin 2020-36
PennyMac is aligning with the updates in Fannie Mae SEL 2020-05, Freddie Mac’s Bulletin 2020-36, except as indicated below.
Effective immediately, PennyMac is aligning with Fannie Mae’s and Freddie Mac’s updated guidance for accessory units outlined in SEL 2020-05 and Bulletin 2020-36. These updates include the eligibility of manufactured homes as an accessory unit when accessory units meet the requirements in Fannie Mae’s Selling Guide section B4-1.3-04/05 and Freddie Mac’s Seller Guide section 5601.12. Conventional transactions with a manufactured home as an accessory unit are eligible for sale to PennyMac only if the accessory unit is given no value by the appraiser.
Any conventional transaction with an accessory unit that does not meet these updated requirements will be considered ineligible for sale to PennyMac. As a reminder, transactions secured by a manufactured home as a standalone property type will also continue to be ineligible for sale to PennyMac.
PennyMac strongly encourages lenders to review the updated Fannie Mae Selling Guide section B4-1.3-04/05 and Freddie Mac Seller Guide section 5601.12 for complete details.
PennyMac is not aligning with the updates related to the CHOICERenovation program, cooperatives or land trusts, as these programs and property types remain ineligible for purchase by PennyMac.
FHA ML 2020-28
PennyMac is aligning with the re-extension of temporary policies related to COVID-19 as announced in FHA’s Mortgagee Letter 2020-28. The temporary policies originally announced in Mortgagee Letter 2020-05 have been re-extended and are effective immediately through October 31, 2020. Appraisal flexibilities will continue for appraisals with an effective date on or before October 31, 2020 and flexibilities for re-verification of employment will continue for cases closed on or before October 31, 2020.
Please see FHA Mortgagee Letters 2020-05 and 2020-28 for complete details.
Please contact your Sales Representative with any questions.