source:
  type: guide
  id: fnma-sel-a2-2-05
  authority: Fannie Mae Selling Guide A2-2-05 — Invalidation of Limited Waiver of
    Representations and Warranties
  description: Fannie Mae Selling Guide A2-2-05 — Invalidation of Limited Waiver of
    Representations and Warranties.
  coverage_tier: operative
obligations:
- id: fnma-sel-a2-2-05-full
  canonical_id: fnma-sel-a2-2-05-full
  section: Fannie Mae Selling Guide A2-2-05 — Invalidation of Limited Waiver of Representations
    and Warranties
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide A2-2-05 — Invalidation of Limited Waiver of
      Representations and Warranties
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'A2-2-05, Invalidation of Limited Waiver of Representations and
      Warranties (01/27/2015) Introduction This topic contains information on invalidation
      of the limited waiver of representations and warranties for mortgage loans underwritten
      through DU, including: Overview Lenders That Sell or Assign Loans Underwritten
      Through DU Lenders That Acquire Loans Underwritten with DU Overview For loans
      submitted to DU for evaluation, the lender must review the entire underwriting
      ﬁle to determine whether it includes any data or other information that was
      either not submitted to DU, or is inconsistent with any data or information
      that was in fact submitted to DU. If any such information (especially of a derogatory
      or contradictory nature) is found, the lender must take appropriate action,
      such as further investigating the information, to see if it would change the
      DU recommendation, or setting aside the DU recommendation if there are grounds
      for the lender to arrive at an underwriting decision other than the one it reached
      on the basis of the original DU recommendation. In such cases, the limited waiver
      of representations and warranties will no longer be valid for a mortgage that
      had received an Approve/Eligible recommendation. Fannie Mae generally places
      no restrictions on the sale or transfer of loans underwritten through DU to
      third parties either before or after the mortgage is closed, other than a requirement
      that the sale or transfer must be Published May 6, 2026 27 in compliance with
      all applicable laws. When the limited waiver of representations and warranties
      is transferable, the selling or transferring lender must fully disclose (1)
      the fact that the mortgage was submitted to DU for evaluation, and (2) the nature
      of the DU recommendation. The selling or transferring lender also must include
      in the mortgage ﬁle that it transfers to the new lender the DU Underwriting
      Findings report and the corresponding DU Underwriting Analysis report (as well
      as any other pertinent DU reports). Lenders That Sell or Assign Loans Underwritten
      Through DU A lender that sells or assigns loans underwritten through DU must
      modify its assignment letters or loan sale agreements to set out instances in
      which a mortgage that was eligible for a limited waiver of representations and
      warranties may no longer be considered eligible. Situations that aﬀect the continued
      eligibility of a mortgage for a limited waiver of representations and warranties
      include, but are not limited to, the following: a signiﬁcant change that makes
      the information on which the DU recommendation was based no longer true, complete,
      or accurate. the elapse of 12 months since the mortgage was originated makes
      the mortgage subject to Fannie Mae’s standard eligibility requirements for seasoned
      mortgages. a determination that the terms of the closed mortgage are substantially
      diﬀerent from those on which the DU recommendation was based or that the DU
      recommendation was based on incorrect information. Lenders That Acquire Loans
      Underwritten with DU A lender that acquires loans underwritten with DU must
      include in its QC processes appropriate procedures to: verify that any conditions
      speciﬁed in the DU Underwriting Findings report have been satisﬁed, and conﬁrm
      that the data from the closed mortgage agrees with the documents and all DU
      reports that are in the loan caseﬁle. If there are inconsistencies between the
      data from the closed mortgage and the data on which DU’s recommendation was
      based, the limited waiver of representations and warranties will not apply—unless
      the lender either: submits corrected information for the closed mortgage to
      DU for evaluation (if it is a licensee) and receives an Approve/Eligible recommendation
      ; or requests the licensee that originally submitted the mortgage to DU to re-enter
      the correct information for the mortgage into DU (if permitted by applicable
      law) for the production of new reports and analyses to conﬁrm that the recommendation
      is still Approve/Eligible for the limited waiver. The lender should request
      that both the results of the resubmission and all new reports be sent to it.
      Recent Related Announcements There are no recently issued Announcements related
      to this topic. Published May 6, 2026 28'
  judgment: false
