Earlier this month, Fannie released Mae Sales Guide Announcement (SEL-2021-01)which lists changes to specifics related to seasonal and secondary income, post-purchase adjustments initiated by sellers / service providers, and any other update.

According to this announcement The obligations to provide evidence for the confirmation of seasonal and / or secondary employment of a borrower have been simplified. Proof that the borrower has been employed for 2 years is required for seasonal employment and is recommended for secondary employment. While outside employment borrowers can have different employers, they cannot have an employment gap of more than one month in the past 12 months, unless such outside employment is considered seasonal. In addition, if a borrower has seasonal income, there is no longer any need to confirm with the borrower’s employer whether the borrower is likely to be reinstated in the next season or to confirm that the borrower is in the same position as the previous two Years of working will be years. Both changes are effective immediately.

This announcement also advises that if a seller or servicer discovers a mismatch between the data attributes submitted to Fannie Mae at the time of delivery and their loan records, a Post-Purchase Adjustment (PPA) may be required. the Sales guide has been updated regarding changes to the process and Requirements for submitting a PPA form.

Finally, Fannie Mae removed references to authorizing the disclosure of data to Fannie Mae as this only applies to legacy loans that are being serviced.