Continuing a focus on knowing your clients and fraud, Fannie Mae released last week Title and Closing Requirements for Multifamily Mortgage Loans Form 4650, a comprehensive update that will impact how you set up future closings. The requirements detailed in the new Form 4650 apply to all new loans under application on or after May 8, 2025.
What’s New
- Approved Title Insurance Underwriter – Fannie Mae will be releasing an Approved Title Insurance Underwriter Schedule naming the Title Insurance Underwriters from which Fannie Mae will accept a loan policy. Fannie Mae did not release this new Schedule with Form 4650, however, Fannie Mae indicated they will publish the Schedule as a new Form 4650.A on or before May 30. Until the schedule is published, you are delegated authority to select the title underwriter subject to the requirements of Form 4650.
- Funding – Fannie Mae now requires the approved Title Insurance Underwriter:
- Prepare the Settlement Statement.
- Hold all escrow funds.
- Disburse funds in accordance with the Settlement Statement and closing instructions Letter.
- Prepare and maintain the Receipts and Disbursements Ledger(s)
[View source.]
