source:
  type: regulation
  id: fnma-sel-b5-4.1-01
  authority: Fannie Mae Single Family Selling Guide B5-4.1-01, Texas Section 50(a)(6) Loans (12/19/2017)
  description: "Fannie Mae Single Family Selling Guide topic B5-4.1-01 (Texas Section 50(a)(6) Loans). Gap-fill\
    \ (verbatim, ID-diff). \n"
obligations:
- id: fnma-sel-b5-4.1-01-0
  canonical_id: fnma-sel-b5-4.1-01-0
  section: Fannie Mae Single Family Selling Guide B5-4.1-01
  description: 'B5-4.1-01 Texas Section 50(a)(6) Loans: Introduction This topic contains information on Texas Section
    50(a)(6) loans, including: Overview Lender Eligibility Loan Origination and Compliance Lender Certiﬁcation Lender’s
    and Servicer’s Obligations to Maintain Procedures for Curing Violations Overview A Texas Section 50(a)…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B5-4.1-01, Texas Section 50(a)(6) Loans (12/19/2017)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'Introduction This topic contains information on Texas Section 50(a)(6) loans, including: Overview
      Lender Eligibility Loan Origination and Compliance Lender Certiﬁcation Lender’s and Servicer’s Obligations
      to Maintain Procedures for Curing Violations Overview A Texas Section 50(a)(6) loan is a loan originated in
      accordance with and secured by a lien permitted under the provisions of Article XVI, Section 50(a)(6), of
      the Texas Constitution, which allow a borrower to take equity out of a homestead property under certain conditions.
      Lender Eligibility Unless otherwise notiﬁed in writing, all lenders are eligible to sell and/or service Texas
      Section 50(a)(6) loans as long as the lender meets the eligibility criteria speciﬁed in Texas Constitution
      Section 50(a)(6). A lender that intends to sell Texas Section 50(a)(6) loans originated by a third-party originator
      is also responsible for ensuring that the originating lender qualiﬁes as an “authorized lender” under Texas
      Constitution Section 50(a)(6). Loan Origination and Compliance In addition to Fannie Mae''s other origination
      and compliance requirements for Texas Section 50(a)(6) loans in'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B5-4.1-01 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b5-4.1-01-1
  canonical_id: fnma-sel-b5-4.1-01-1
  section: Fannie Mae Single Family Selling Guide B5-4.1-01
  description: 'B5-4.1-01 Texas Section 50(a)(6) Loans: , 2026 752 this chapter, lender agrees to the following:
    ✓ Requirement The borrower’s ﬁrst payment must be due no later than two months after closing. For purposes of
    the compliance with the acknowledgment of the "fair market value" of the homestead property requirement, the
    "fai…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B5-4.1-01, Texas Section 50(a)(6) Loans (12/19/2017)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: ', 2026 752 this chapter, lender agrees to the following: ✓ Requirement The borrower’s ﬁrst
      payment must be due no later than two months after closing. For purposes of the compliance with the acknowledgment
      of the "fair market value" of the homestead property requirement, the "fair market value" must be based on
      an appraisal and the appraisal must be attached to the written acknowledgment. See'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B5-4.1-01 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b5-4.1-01-2
  canonical_id: fnma-sel-b5-4.1-01-2
  section: Fannie Mae Single Family Selling Guide B5-4.1-01
  description: 'B5-4.1-01 Texas Section 50(a)(6) Loans: Texas Section 50(a)(6) Loan Underwriting, Collateral, and
    Closing Considerations for Fannie Mae''s appraisal requirements. The proceeds from a Texas Section 50(a)(6)
    loan must not be used to acquire or improve the homestead if a loan for that purpose could have been made under
    a d…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B5-4.1-01, Texas Section 50(a)(6) Loans (12/19/2017)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: Texas Section 50(a)(6) Loan Underwriting, Collateral, and Closing Considerations for Fannie
      Mae's appraisal requirements. The proceeds from a Texas Section 50(a)(6) loan must not be used to acquire
      or improve the homestead if a loan for that purpose could have been made under a diﬀerent provision of the
      Texas Constitution. Fannie Mae has no other restrictions on the use of the loan proceeds. If the new loan
      is a Texas Section 50(a)(6) loan reﬁnance transaction originated to cure a failure in the original loan to
      comply with Texas Constitution Section 50(a)(6), then the new loan is eligible for sale to Fannie Mae provided
      that it complies in all respects with Fannie Mae’s requirements. However, unless a reﬁnance transaction has
      been completed to cure a failure in the original loan transaction to comply with Texas Constitution Section
      50(a)(6), a Texas Section 50(a)(6) loan is ineligible for sale to Fannie Mae if the lender has either identiﬁed
      or been notiﬁed by the borrower of a failure to comply, whether or not there has already been a cure or an
      attempt to cure the failure to comply. DU does not contain the speciﬁc eligibility rules needed to determine
      eligibility of Texas Section 50(a)(6) loans under Texas Constitution Section 50(a)(6) or the
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B5-4.1-01 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b5-4.1-01-3
  canonical_id: fnma-sel-b5-4.1-01-3
  section: Fannie Mae Single Family Selling Guide B5-4.1-01
  description: 'B5-4.1-01 Texas Section 50(a)(6) Loans: . Lenders must determine whether reﬁnance loans secured
    by properties in Texas are eligible for sale to Fannie Mae, and should be aware that even though a loan may
    receive an “Eligible” recommendation, the loan may not comply with Texas Constitution Section 50(a)(6) or be
    eligibl…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B5-4.1-01, Texas Section 50(a)(6) Loans (12/19/2017)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: . Lenders must determine whether reﬁnance loans secured by properties in Texas are eligible
      for sale to Fannie Mae, and should be aware that even though a loan may receive an “Eligible” recommendation,
      the loan may not comply with Texas Constitution Section 50(a)(6) or be eligible for delivery according to
      Texas Constitution Section 50(a)(6) or the
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B5-4.1-01 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b5-4.1-01-4
  canonical_id: fnma-sel-b5-4.1-01-4
  section: Fannie Mae Single Family Selling Guide B5-4.1-01
  description: 'B5-4.1-01 Texas Section 50(a)(6) Loans: . Lender Certiﬁcation By sale of a Texas Section 50(a)(6)
    loan to Fannie Mae, the lender represents, warrants, and certiﬁes that with respect to all of the Texas Section
    50(a)(6) loans delivered to Fannie Mae, whether or not originated by the lender: All Texas Section 50(a)(6)
    lo…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B5-4.1-01, Texas Section 50(a)(6) Loans (12/19/2017)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: '. Lender Certiﬁcation By sale of a Texas Section 50(a)(6) loan to Fannie Mae, the lender represents,
      warrants, and certiﬁes that with respect to all of the Texas Section 50(a)(6) loans delivered to Fannie Mae,
      whether or not originated by the lender: All Texas Section 50(a)(6) loans were originated pursuant to written
      processes and procedures that comply with the provisions of the Texas Constitution applicable to mortgage
      loans. The lender has in place a speciﬁc process for the receipt, handling, and monitoring of notices from'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B5-4.1-01 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b5-4.1-01-5
  canonical_id: fnma-sel-b5-4.1-01-5
  section: Fannie Mae Single Family Selling Guide B5-4.1-01
  description: 'B5-4.1-01 Texas Section 50(a)(6) Loans: , 2026 753 borrowers that lender (or the mortgage originator,
    if lender is the servicer but not the originator) failed to comply with the provisions of the law applicable
    to Texas Section 50(a)(6) loans. Such process must be adequate to ensure that the lender will correct the fai…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B5-4.1-01, Texas Section 50(a)(6) Loans (12/19/2017)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: ', 2026 753 borrowers that lender (or the mortgage originator, if lender is the servicer but
      not the originator) failed to comply with the provisions of the law applicable to Texas Section 50(a)(6) loans.
      Such process must be adequate to ensure that the lender will correct the failure to comply by one of the authorized
      means no later than the 60th day after the date the lender is notiﬁed of the failure to comply by the borrower.
      An attorney familiar with the provisions of Texas Constitution Section 50(a)(6) was consulted in connection
      with the development and implementation of the processes and procedures used for the origination of the Texas
      Section 50(a)(6) loans. To ensure ongoing compliance with the law applicable to loans authorized by Texas
      Constitution Section 50(a)(6), the processes and procedures used for the origination of the Texas Section
      50(a)(6) loans will be reviewed by the lender regularly and will be updated and revised, as appropriate pursuant
      to clariﬁcations of the law, on a regular and continual basis. Lender’s and Servicer’s Obligations to Maintain
      Procedures for Curing Violations Lenders and servicers must have speciﬁc processes in place to cure any failure
      to comply with Texas Constitution Section 50(a)(6) identiﬁed with respect to a loan sold to or serviced on
      behalf of Fannie Mae by one of the authorized means, as required by the “Lender Certiﬁcation” requirements
      described above. A lender’s or servicer’s failure to cure within 60 days after being notiﬁed of a failure
      to comply may, under Texas law, result in the forfeiture of all principal and interest due under the Texas
      Section 50(a)(6) loan. However, any action taken, or not taken, in connection with a failure to comply with
      Texas Constitution Section 50(a)(6), even if such action is a result of the lender’s or servicer’s eﬀort to
      cure a failure to comply, that results in any of the following constitutes a breach of the lender’s selling
      representations and warranties and/or servicing obligations and requirements: a forfeiture of any principal
      or interest due under the mortgage loan; invalidation of the mortgage as a ﬁrst lien; abatement of accrual
      of interest and the borrower’s obligations under the mortgage loan; reduction in the principal amount of the
      mortgage loan; or any modiﬁcation of the amount, interest rate, term, or other provision of the mortgage loan.
      Such action, taken or not taken, shall be deemed a failure to correct a signiﬁcant defect and/or a servicing
      defect that permits Fannie Mae to exercise any of the remedies provided in the Lender Contract, including
      the right to require repurchase of the loan. If the lender or servicer receives notice from a borrower that
      a lender (or the mortgage originator, if the lender or the servicer is not the originator) failed to comply
      with Texas Constitution Section 50(a)(6), the lender or servicer must immediately, but no later than seven
      business days after receipt, take the following actions: inform Fannie Mae’s Legal department by submitting
      a Non-Routine Litigation (Form 20) and include the borrower notice in its submission; and, collaborate with
      Fannie Mae on the appropriate response, including any cure that may be necessary, within the 60-day-time frame
      provided by the requirements of Texas Constitution Section 50(a)(6). Recent Related Announcements There are
      no recently issued Announcements related to this topic.'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B5-4.1-01 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
