Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance

fnma-sel-b3-4-3-19

Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance.

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source:
  type: guide
  id: fnma-sel-b3-4.3-19
  authority: Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance
  description: Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance.
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    section: Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance
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      authority: Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance
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      paragraph_quote: 'B3-4.3-19, Cash Value of Life Insurance (05/27/2014) Introduction This topic contains information on the cash value of life insurance, including: Cash Value of Life Insurance and Debt-to-Income Ratios Documenting Borrower Receipt of Funds Cash Value of Life Insurance and Debt-to-Income Ratios Published May 6, 2026 445 Net proceeds from a loan against the cash value or from the surrender of a life insurance policy are an acceptable source of funds for the down payment, closing costs, and reserves. The lender must assess repayment or additional obligation considerations to determine the impact on borrower qualiﬁcation or reserves. If penalties for failure to repay the loan are limited to the surrender of the policy, payments on a loan secured by the cash value of a borrower’s life insurance policy do not have to be considered in the total debt-to-income ratio. If additional obligations are indicated, the obligation amount must be factored into the total debt-to-income ratio, or subtracted from the borrower’s ﬁnancial reserves. Documenting Borrower Receipt of Funds If the funds are needed for the down payment or closing costs, lenders must document the borrower’s receipt of the funds from the insurance company by obtaining either a copy of the check from the insurer or a copy of the payout statement issued by the insurer. If the cash-value of the life insurance is being used for reserves, the cash-value must be documented but does not need to be liquidated and received by the borrower. Recent Related Announcements There are no recently issued Announcements related to this topic.'

Verbatim regulatory text (1)

Verbatim provisions from Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance

B3-4.3-19, Cash Value of Life Insurance (05/27/2014) Introduction This topic contains information on the cash value of life insurance, including: Cash Value of Life Insurance and Debt-to-Income Ratios Documenting Borrower Receipt of Funds Cash Value of Life Insurance and Debt-to-Income Ratios Published May 6, 2026 445 Net proceeds from a loan against the cash value or from the surrender of a life insurance policy are an acceptable source of funds for the down payment, closing costs, and reserves. The lender must assess repayment or additional obligation considerations to determine the impact on borrower qualiﬁcation or reserves. If penalties for failure to repay the loan are limited to the surrender of the policy, payments on a loan secured by the cash value of a borrower’s life insurance policy do not have to be considered in the total debt-to-income ratio. If additional obligations are indicated, the obligation amount must be factored into the total debt-to-income ratio, or subtracted from the borrower’s ﬁnancial reserves. Documenting Borrower Receipt of Funds If the funds are needed for the down payment or closing costs, lenders must document the borrower’s receipt of the funds from the insurance company by obtaining either a copy of the check from the insurer or a copy of the payout statement issued by the insurer. If the cash-value of the life insurance is being used for reserves, the cash-value must be documented but does not need to be liquidated and received by the borrower. Recent Related Announcements There are no recently issued Announcements related to this topic.

Source: Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance · source URL · snapshot 5f7b8b79da595d76

Operationalizing Fannie Mae Selling Guide B3-4.3-19 — Cash Value of Life Insurance

This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.

Source of record: https://claudeforcompliance.com/regs/fnma-sel-b3-4-3-19/ · register fnma-sel-b3-4-3-19 · Claude for Compliance. Free to read and download; see regulatory updates and methodology.