Selling Guide Announcement (SEL-2026-05)

The Selling Guide has been updated to include changes to the following:

• Updates to remote online notarization requirements: revising certain requirements related to loans closed using remote online notarization
• Single-closing construction-to-permanent loan modifications: clarifying the use of DU resubmission tolerances when modifying the interest rate and loan amount
• IRS tax installment agreements: allowing installment arrangements to be considered as part of the borrower’s monthly debt obligations
• Co-op project eligibility: providing eligibility guidance for condop projects

View the list of impacted topics.

Updates to remote online notarization requirements

We updated the Selling Guide to revise certain requirements related to loans closed using remote online notarization (RON). With this update, we removed the requirement for sellers and servicers to maintain, or cause to be retained, the video recording of the remote notarial ceremony for loans closed using RON. Lenders must also ensure the RON platform used for loan closings complies with industry standards pursuant to the MISMO Remote Online Notarization Standards Version 2.0 (Draft), except for the Identification and Authentication section.

Additionally, lenders may verify identity using:

• technical methods (for example, credential analysis of government-issued identification and knowledge-based authentication), or
• non-technical methods (for example, a credible witness), consistent with industry practices.

The lender must also retain the RON audit trail as part of the electronic loan file delivered to Fannie Mae and transfer it to the servicer, consistent with existing electronic records and attribution requirements.

Effective: These changes are effective immediately and apply to loans closed using RON on or after May 6, 2026.

Single-closing construction-to-permanent loan modifications

We clarified the Selling Guide for single closing construction-to-permanent loans to allow sale of the loan with eligible modified terms (such as, loan amount and interest rate), without requiring its resubmission to Desktop Underwriter. The lender must ensure the changes fall within allowable DU resubmission tolerances in Selling Guide B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report, and the loan complies with all other requirements of Selling Guide B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions.

Effective: Lenders may take advantage of these clarifications immediately.

IRS tax installment agreements

We updated the Selling Guide regarding treatment of Federal Income Tax Installment Agreements when calculating monthly debt obligations. When the borrower has an IRS installment agreement to repay delinquent federal taxes, and no federal tax lien has been filed against the subject property, the lender must consider the monthly payment amount as part of the borrower’s monthly debt obligations as follows:

• For an installment agreement approved by the IRS, the lender must obtain
  • a copy of the approved agreement showing monthly payment and total amount owed, and
  • evidence the borrower is current on payments.
• For an installment agreement still pending approval, the lender must obtain a copy of the application showing repayment terms, monthly payment, and the total amount owed.

If these requirements are not met, the borrower must fully pay off the IRS tax balance either before or at closing in accordance with our Guide.

Effective: Lenders may take advantage of these changes immediately.

Co-op project eligibility

We updated the Selling Guide to provide eligibility guidance for condop projects, which are defined as co-op projects within a condo/co-op (condop) development. The updated guidance applies to all loan deliveries secured by co-op shares in condop projects and is generally consistent with the eligibility requirements for co-op loan deliveries secured by traditional co-op buildings.

In addition, we clarified project eligibility standards and documentation requirements that apply specifically to condop projects.

Effective: Lenders may incorporate these policy changes into the project review process immediately but must do with new loan applications on or after Aug. 6, 2026.

Impacted Topics