Skip to main content

Fannie Mae Clarifies Policy on Immigrants

Phil Hall
Mar 26, 2019
Photo credit: Getty Images/AlxeyPnferov

Fannie Mae has issued a policy clarification on immigrant eligibility to participate in the government-sponsored enterprises’ (GSE) programs.
 
“We have a longstanding policy on eligibility for non-U.S. citizen borrowers,” said the GSE in a fact sheet. “Fannie Mae purchases and securitizes mortgages to non-citizens who are lawful permanent or non-permanent residents of the United States under the same terms available to U.S. citizens.”
 
In its clarification of eligibility guidelines, Fannie Mae stated it was seeking to “help lenders determine eligibility for non-U.S. citizen borrowers.” The Fannie Mae Selling Guide defines a legally present borrower as someone with either a Social Security Number or Individual Taxpayer Identification Number and a current and verified status that can be confirmed by either a valid employment authorization document (EAD) or federal documentation showing current immigration status, such as a Green Card or work visa. Fannie Mae also noted that documentation of income continuity was not required for most employment-related income types, such as base, bonus, overtime or commission.
 
“Lenders can continue to decide what type of documentation is appropriate and what can be retained as part of the loan file to show that a borrower is legally present,” said Fannie Mae, adding that “subsequent changes to the law and its application may cause us to reevaluate our policy on this matter prospectively.” 
 
In response to the fact sheet from Fannie Mae, Kevin Peranio, Chief Lending Officer of PRMG, noted that the GSE's clarification of its policy stands out from the Department of Housing and Urban Development's "unclear position" in regard to DACA program enrollees.
 
"Either the ITIN or the SSN, in conjunction with DACA status (EAD Category C33) indicates the borrower has established 'legal presence' for Fannie Mae’s purposes," he said. "Importantly, for loans that meet Fannie’s documentation and eligibility requirements, the fact sheet says that Fannie Mae 'will not seek a loan repurchase solely based on a change in the borrower’s immigration status after closing.'"
 

 
Published
Mar 26, 2019
Fannie Mae Plans To Restart Credit Risk Transfers In 2021

Paused Since March 2020, New CRT Transactions To Begin In October

Regulation and Compliance
Sep 21, 2021
Biden Nominates McCargo To Lead Ginnie Mae

Currently Serves As Senior Advisor For Housing Finance At HUD

Regulation and Compliance
Sep 14, 2021
OCC Plans To Rescind 2020 CRA Rule

The OCC formally issued a proposal to rescind a controversial rule within the Community Reinvestment Act (CRA) that was published in June 2020.

Regulation and Compliance
Sep 10, 2021
CSBS Changes Servicer Liquidity Policy

CSBS And MBA Encourage States To Adopt Consistently

Regulation and Compliance
Sep 08, 2021
Flexibilities Move Forward

Pandemic Priorities Continue To Drive Industry Modernization

Regulation and Compliance
Sep 08, 2021
FHFA And The Enterprises Coordinate Action On Equitable Housing

Today the FHFA is announcing that Fannie Mae and Freddie Mac (the Enterprises) will submit Equitable Housing Finance Plans to the FHFA by the end of 2021.

Regulation and Compliance
Sep 08, 2021