Fannie Mae Updates Uniform Legal Instruments

Fannie Mae recently published a selling guide announcement where it released updated uniform legal instruments.  Lenders are required to use the updated uniform legal instruments beginning January 1, 2023, though the forms may be used immediately.

In collaboration with Freddie Mac, Fannie Mae conducted a comprehensive review of the instruments with a goal of enhancing their clarity and usability. The result of this review was an update to all of Fannie Mae’s uniform legal instruments—security instruments, notes, riders and addenda, and special-purpose documents (e.g., state-specific instruments). More specifically, Fannie Mae describes the updated forms as employing more headings and subheadings, shorter paragraphs and sentences, and more clearly defined lists. Further, Fannie Mae believes the updated forms use plainer language and clarify the explanation of borrower and lender obligations, while also accounting for the changes the industry has experienced over time, better reflecting current industry practices and systems.