May 7, 2025
To: Clients and Friends
From: Daniel S. Engle
Subject: Fannie Mae and Freddie Mac Update Their Selling Guides Concerning Interested Party Contributions and Seller Concessions
On May 7, 2025, Fannie Mae (SEL-2025-03 click here) and Freddie Mac (Bulletin 2025-6 click here) both announced updates to their Selling Guides concerning seller concessions, lender incentives, and interested party contributions. The new guidance will be effective for loans with a note date on or after September 3, 2025, but lenders are encouraged to use the updated guidance immediately. Of note is clarification that realtor rebates that are not applied to the transaction as financing concessions are considered sales concessions.
This Memorandum is provided as general information in regard to the subject matter covered, but no representations or warranty of the accuracy or reliability of the content of this information are made or implied. Opinions expressed in this memorandum are those of the author alone. In publishing this information, neither the author nor the law firm of Black, Mann & Graham L.L.P. is engaged in rendering legal services. While this information concerns legal and regulatory matters, it is not legal advice and its use creates no attorney-client relationship or any other basis for reliance on the information. Readers should not place reliance on this information alone but should seek independent legal advice regarding the law applicable to matters of interest or concern to them. The law firm of Black, Mann & Graham L.L.P. expressly disclaims any obligation to keep the content of this information current or free of errors.
Full Memorandum
