Fannie Mae Selling Guide B2-1.5-03 — Legal Requirements

fnma-sel-b2-1-5-03

Fannie Mae Selling Guide B2-1.5-03 — Legal Requirements.

This register: .xlsx .csv

Verbatim regulatory text (1)

Verbatim provisions from Fannie Mae Selling Guide B2-1.5-03 — Legal Requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

Fannie Mae Selling Guide B2-1.5-03 — Legal Requirements

Effective 2020-06-03 · publisher's stamp for this provision

B2-1.5-03, Legal Requirements (06/03/2020) Introduction This topic contains information on legal requirements, including: First Mortgage Lien Position Personal Property Rental Property Leases Mortgages with a Capitalization Option Mortgages Permitting Open-end Advances First Mortgage Lien Position If the mortgage being delivered to Fannie Mae is a first mortgage, the lien of the security instrument must be a first and paramount lien on the borrower’s estate in the real property. Personal Property Personal property may not be included as additional security for any mortgage on a one-unit property unless otherwise specified by Fannie Mae. For example, certain personal property is pledged when the Multistate Rider and Addenda ( Form 3170) is used. Rental Property Leases Leases that predate the mortgage could have a superior claim to the mortgage. Furthermore, state laws may differ on the relationship between an unrecorded lease and a subsequent mortgage. The lender is responsible for ensuring clear title and first lien enforceability in accordance with A2-2-07, Life-of-Loan Representations and Warranties Mortgages with a Capitalization Option Some mortgage instruments permit the note holder to capitalize delinquent interest or sums advanced to pay insurance premiums, property taxes, or other expenses required to protect the value of the security property by adding them to the outstanding principal balance of the mortgage. Fannie Mae will not purchase or securitize mortgages where any such funds have been capitalized or advanced by the note holder prior to delivery to Fannie Mae. Mortgages Permitting Open-end Advances Fannie Mae purchases or securitizes a mortgage that includes an open-end advance provision only if the provision gives Fannie Mae the option not to make any advances. If funds were advanced prior to delivery, the transaction is considered a modified mortgage that is not eligible for delivery. See B2-1.5-02, Loan Eligibility.

Source: Fannie Mae Selling Guide B2-1.5-03 — Legal Requirements · source URL · snapshot 2897f21e1e729b42

Get this regulation in your AI window

Announcements change Guide topics, but the old wording keeps circulating. An assistant will hand you the prior version and name no date at all.Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.

Open in Claude Open in ChatGPT

Open in Claude shows the one-time setup: paste one address, no account with us. Open in ChatGPT asks ChatGPT about this page, with no setup. Either way it’s free.

Next step: the FNMA AI Lender Letter playbook. Run it in your AI window →

Get notified if this rule changes

One email when Fannie Mae Selling Guide B2-1.5-03 — Legal Requirements changes: what changed, the new verbatim text, and the effective date. Nothing else.

Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.

Source of record: https://claudeforcompliance.com/regs/fnma-sel-b2-1-5-03/ · register fnma-sel-b2-1-5-03 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.