Fannie Mae is changing several requirements for lenders that sell mortgages to the company, including standards for artificial intelligence oversight, manually underwritten loans and multifamily documentation. The changes could affect how lenders review applications, document loans and evaluate some borrowers before mortgages are delivered to Fannie Mae.
New requirements cover several parts of the lending process
The mortgage company has added expectations for the governance and control of artificial intelligence used by its business partners, according to reports cited in the announcement. The changes come as lenders continue to use automated systems alongside human reviews in mortgage underwriting.
Fannie Mae is also revising the standards for manual underwriting. In that process, a lender reviews a borrower's application and supporting information without relying solely on an automated approval decision. The revised standards address credit scores, reserves and cash-out refinances, according to a lender letter issued Nov. 4.
The same Nov. 4 announcement, identified as Selling Guide Announcement SEL-2026-10, expands the use of VantageScore 4.0 for manually underwritten loans. The expansion also applies to loan cases handled under DU version 12.1. Fannie Mae separately adjusted the treatment of additional units in condominium projects, broadening the circumstances in which those units can be counted.
| Change | Timing |
|---|---|
| Revised loan documents | May be used immediately; mandatory for specified loans with commitment dates from Dec. 8, 2026 |
| Updated manual-underwriting eligibility standards | Apply to loans sold from Feb. 22, 2027 |
| VantageScore 4.0 expansion | Published in the Nov. 4 Selling Guide announcement |
Multifamily documents get separate revisions
A separate document, Multifamily Lender Letter 26-09, revises documents used in Fannie Mae's multifamily business. The changes clarify terminology related to equity and allow lenders to use the revised documents immediately. For specified loans, however, the new documents become mandatory when the commitment date is Dec. 8, 2026.
The updated eligibility rules for manually underwritten loans take effect for mortgages sold to Fannie Mae beginning Feb. 22, 2027. That timing gives lenders separate implementation periods for the documentation changes and the underwriting standards. For borrowers, the practical effect will depend on how a lender applies the revised requirements to an individual mortgage application and whether the loan is sold to Fannie Mae.
The package also includes changes involving condominium projects and additional units. Those revisions widen the conditions under which such units may be included in the eligibility analysis. The announcements do not describe a change to a universal consumer credit-score requirement; they set standards for lenders and for loans that meet Fannie Mae's eligibility rules.
