source:
  type: guide
  id: fnma-sel-b5-5.1-01
  authority: Fannie Mae Selling Guide B5-5.1-01 — Community Seconds Loans
  description: Fannie Mae Selling Guide B5-5.1-01 — Community Seconds Loans.
  coverage_tier: operative
obligations:
- id: fnma-sel-b5-5.1-01-full
  canonical_id: fnma-sel-b5-5.1-01-full
  section: Fannie Mae Selling Guide B5-5.1-01 — Community Seconds Loans
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B5-5.1-01 — Community Seconds Loans
    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: 'B5-5.1-01, Community Seconds Loans (05/03/2023) Introduction
      This topic contains information on Community Seconds loans, including: Overview
      Review of Community Seconds Programs Overview A Community Seconds loan is subordinate
      ﬁnancing that is originated under an aﬀordable housing program. Fannie Mae does
      not purchase Community Seconds loans; however, ﬁrst mortgages that are originated
      with this type of subordinate ﬁnancing are eligible for purchase by Fannie Mae
      in accordance with the requirements of this Guide. Review of Community Seconds
      Programs The lender is responsible for reviewing Community Seconds programs
      to ensure the programs comply with this Guide. The Community Seconds Checklist
      includes a checklist that lenders may use to evaluate key considerations in
      determining whether to grant approval of a Community Seconds program. The following
      table provides lender requirements for reviewing a Community Seconds program.
      ✓ The lender must... Review all documents applicable to the program, including
      the legal documents (such as the promissory note and the security instrument),
      the program description, and any other pertinent documents to conﬁrm compliance
      with Section B5-5.1, Community Seconds. Determine the mortgage for the Community
      Seconds loan is clearly subordinate to the ﬁrst mortgage. The title insurance
      in eﬀect must ensure priority of the ﬁrst mortgage being delivered to Fannie
      Mae by showing the Community Seconds loan in a subordinate position. Published
      May 6, 2026 767 ✓ The lender must... Conﬁrm the program allows the holder of
      the ﬁrst mortgage to foreclose and acquire title to the property free and clear
      of all interests of the Community Seconds provider. Note: If a Community Seconds
      provider assumes the ﬁrst mortgage and cures all outstanding defaults under
      that mortgage, the Community Seconds ﬁnancing may be maintained. If applicable,
      evaluate any recorded deed restrictions or option agreements, or local ordinances
      that impose similar restrictions, to conﬁrm compliance with other Fannie Mae
      policies, such as those applicable to resale restrictions (see Section B5-5.2,
      Loans with Resale Restrictions and Section B5-5.3, Shared Equity Transactions).
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SEL-2023-04 May 03, 2023'
  judgment: false
