source:
  type: guide
  id: fnma-sel-b5-7-04
  authority: Fannie Mae Selling Guide B5-7-04 — High LTV Refinance Representations
    and Warranties
  description: Fannie Mae Selling Guide B5-7-04 — High LTV Refinance Representations
    and Warranties.
  coverage_tier: operative
obligations:
- id: fnma-sel-b5-7-04-full
  canonical_id: fnma-sel-b5-7-04-full
  section: Fannie Mae Selling Guide B5-7-04 — High LTV Refinance Representations and
    Warranties
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B5-7-04 — High LTV Refinance 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: 'B5-7-04, High LTV Reﬁnance Representations and Warranties (03/01/2023)
      Introduction This topic contains information about the representations and warranties
      for the high LTV reﬁnance option, including: Lender Representations and Warranties
      Applicability of the Representation and Warranty Framework Lender Representations
      and Warranties For high LTV reﬁnance loans, lenders are responsible for the
      standard representations and warranties described in the Selling Guide, with
      a number of exceptions as noted below. For all High LTV Reﬁnances If the lender
      obtains an appraisal for the subject property, the lender is not responsible
      for the standard representations and warranties related to the marketability
      and condition of the property as reﬂected in the property valuation. The lender
      remains responsible for the appraisal as it pertains to the value. Lenders may
      deliver loans on properties with a condition rating of C6 and/or a quality rating
      of Q6 completed on an “as-is” basis. There is no requirement for the appraisal
      to be completed “subject to” repairs being made. For properties in a project,
      the lender is not responsible for the standard representations and warranties
      related to project eligibility. However, the lender must represent and warrant
      the property is not a condo or co-op hotel or motel, houseboat project, or a
      timeshare or segmented ownership project. Loans Underwritten in DU The lender
      is not responsible for any of the representations and warranties associated
      with the loan being reﬁnanced. Published May 6, 2026 817 The lender is relieved
      of the standard underwriting representations and warranties (eligibility, credit
      history, liabilities, income and asset assessment) with respect to the new mortgage
      loan if the lender meets all of the following requirements: All data in the
      loan caseﬁle is complete, accurate, and not fraudulent. The lender follows the
      instructions in the DU Underwriting Findings report regarding income, employment,
      asset, and ﬁeldwork documentation. The lender complies with all other requirements
      described in A2-2-04, Limited Waiver and Enforcement Relief of Representations
      and Warranties The lender complies with the requirements described in A2-2-06,
      Representations and Warranties on Property Value. Manually Underwritten Loans
      The lender is not responsible for any of the representations and warranties
      associated with the loan being reﬁnanced other than those related to eligibility
      of the existing loan being reﬁnanced. The lender must represent and warrant
      that the new loan meets all the requirements of the high LTV reﬁnance option
      as described in this Guide. Applicability of the Representation and Warranty
      Framework High LTV reﬁnance loans are eligible for enforcement relief in accordance
      with the requirements of A2-3.2-02, Enforcement Relief for Breaches of Certain
      Representations and Warranties Related to Underwriting and Eligibility. Recent
      Related Announcements The table below provides references to recently issued
      Announcements that are related to this topic. Announcements Issue Date Announcement
      SEL-2023-02 March 01, 2023'
  judgment: false
