Fannie Mae announced the requirement to have the Borrower’s Authorization for Counseling form signed at closing has been removed from the Selling Guide for their new HomeReady loans, and Exhibit E-2-01 Borrower’s Authorization for Counseling has been deleted from the guide. Lenders are no longer required to execute the Borrower Authorization for Counseling form at or prior to closing, effective immediately. Servicers are encouraged to implement the Servicing Guide policy changes immediately, but must do so by April 1, 2016.
Print Authorization for Counseling (Field 100811) was recently set to “Yes” globally when HomeReady/MyCommunity (Field 33774) is “Yes” in order to trigger the Borrower’s Authorization for Counseling (Cx5599) for HomeReady loans. This global functionality will be removed.
Borrower’s Authorization for Counseling (Cx5599) will print by default in all Closings when Print Authorization for Counseling (Field 100811) is “Yes”, and existing custom print conditions will not be modified unless requested, but the document will no longer be triggered by default for HomeReady loans.
These changes will take effect on December 29, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR 189765 & TW 140352