source:
  type: guide
  id: fnma-sel-b4-2.1-06
  authority: Fannie Mae Selling Guide B4-2.1-06 — Remedial Actions for Environmental
    Hazard Assessments Below Standards
  description: Fannie Mae Selling Guide B4-2.1-06 — Remedial Actions for Environmental
    Hazard Assessments Below Standards.
  coverage_tier: operative
obligations:
- id: fnma-sel-b4-2.1-06-full
  canonical_id: fnma-sel-b4-2.1-06-full
  section: Fannie Mae Selling Guide B4-2.1-06 — Remedial Actions for Environmental
    Hazard Assessments Below Standards
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B4-2.1-06 — Remedial Actions for Environmental
      Hazard Assessments Below Standards
    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: 'B4-2.1-06, Remedial Actions for Environmental Hazard Assessments
      Below Standards (06/03/2020) Introduction This topic contains information on
      remedial actions for environmental hazard assessments that are below standards,
      including: Background Remedial Actions for Environmental Hazard Assessments
      Below Standards “No Further Action” Notices Background When an environmental
      hazard has been fully remediated, the hazard no longer poses any risks for future
      use of the land or structures or the need for ongoing activities to ensure human
      health and safety. Some hazards result in ongoing risks that require continual
      mitigation strategies to minimize potential harm. The environmental hazard is
      considered mitigated when those strategies suﬃciently minimize the current and
      future risks to human health and safety. If the hazard will never be fully remediated
      but the impacts have been suﬃciently mitigated to satisfy applicable regulatory
      standards, the site may be deemed suitable and safe for residential use. The
      lender has the delegation to review the environmental hazard and its mitigation
      plan to determine if the project meets Fannie Mae’s requirements. Published
      May 6, 2026 655 Remedial Actions for Environmental Hazard Assessments Below
      Standards Properties that fail to meet a particular standard may be corrected
      through remedial actions and then retested. Remedial actions must be undertaken
      with the advice and written endorsement of a qualiﬁed environmental consultant.
      All remedial actions must be taken in accordance with all regulatory and good
      management standards. Typically, lenders must conﬁrm the completion and eﬀectiveness
      of remedial actions based on the following conditions: A qualiﬁed environmental
      consultant states in writing that remedial work needed to make the property
      eligible under the environmental standards can be completed within 90 days.
      The project’s developer or sponsor signs a contract with a qualiﬁed ﬁrm to perform
      the remedial work within 90 days. The lender must warrant that the job has been
      satisfactorily completed and the property meets Fannie Mae’s environmental eligibility
      standards. If the property is not remediated at the time of project approval,
      the project developer or sponsor must provide a performance escrow equal to
      150% of the gross contract amount to ensure the completion of the remedial work.
      Loans securing units in the project cannot be sold to Fannie Mae before completion
      of the remediation. “No Further Action” Notices Some jurisdictions or government
      agencies will issue a “no further action” notice (or letter) to alert the public
      that all available remediation steps for an environment hazard have been completed.
      A “no further action” status for a speciﬁc environmental hazard may indicate
      that the hazard has been fully remediated and the site is suitable for residential
      development, all applicable remediation actions have been taken but the site
      is not suitable for any type of development, or other variations between these
      two opposing outcomes. Due to the variation of what a “no further action” status
      means, lenders cannot rely solely on that status to determine if the environmental
      hazard has been suﬃciently resolved. For the project to meet Fannie Mae’s requirements,
      lenders must determine if the speciﬁc “no further action” condition has been
      suﬃciently resolved. Lenders must follow Fannie Mae’s appraisal and notiﬁcation
      requirements for environmental hazards in B4-1.4-08, Environmental Hazards Appraisal
      Requirements, any time the subject property is impacted by an environmental
      hazard. Recent Related Announcements The table below provides references to
      recently issued Announcements that are related to this topic. Published May
      6, 2026 656 Announcements Issue Date Announcement SEL-2020-03 June 03, 2020
      Section B4-2.2, Project Eligibility'
  judgment: false
