Fannie Mae Joins Freddie Mac to Limit Title Agent Funding for Multifamily Housing

Fannie Mae issued an update to its Multifamily Selling and Servicing Guide that modified title and closing requirements for multifamily mortgages that went into effect for loan applications received on or after May 8.

The major change impacting title agents is that Fannie Mae now requires title insurance underwriters to perform all funding functions—except where limited by law, which limitation appear inapplicable to California.

These changes are similar to escrow and settlement function requirements Freddie Mac announced last year on October 17, and that the CLTA highlighted in its November enews.

ALTA has met with Fannie Mae and Freddie Mac since last year about these funding changes and stated that it will continue to engage with the agencies to share member concerns.