Updated: November 12, 2025
Fannie Mae headlines today include a fresh Servicing Guide update, confirmation that Desktop Underwriter® will drop its hard 620 score minimum next week, a new weekly read on refinance activity, and policy chatter in Washington about 50‑year and “portable” mortgages.
Key takeaways
- New Servicing Guide update (SVC‑2025‑06) clarifies bankruptcy policies and adds an allowable attorney fee aligned to federal rule changes. Effective dates fall on Dec. 1, 2025 and Feb. 1, 2026, depending on the item. [1]
- Selling Guide change (SEL‑2025‑09) removes the minimum 620 representative credit score for DU® on new loan casefiles created on or after Nov. 16, 2025, and expands Day 1 Certainty® enforcement relief for certain undisclosed non‑mortgage liabilities. [2]
- Refi pulse: Fannie Mae’s RALI shows refinance dollar volume fell 15.9% WoW for the week ended Nov. 7, but remains up 108.8% YoY; next update arrives Nov. 18. [3]
- Policy debate: The White House says it’s considering backing 50‑year mortgages; FHFA is also evaluating “portable” mortgages, drawing mixed reviews from housing economists. [4]
- Governance & legal: A new lawsuit alleges FMLA retaliation and an ethics‑complaint breach at Fannie Mae; separate reporting this week details the firing of internal ethics staff tied to broader FHFA shake‑ups. [5]
What changed for servicers today (SVC‑2025‑06)
Fannie Mae published Announcement SVC‑2025‑06, a same‑day Servicing Guide update that (1) adds a “Response to Motion to Determine Status” fee to the Allowable Bankruptcy Attorney Fees Exhibit (with a naming cleanup of another fee), and (2) clarifies that loans subject to recourse or indemnification must be voluntarily repurchased before proceeding with a court‑ordered bankruptcy cramdown. The new fee applies to services on or after Dec. 1, 2025, and servicers must implement the cramdown clarification by Feb. 1, 2026. [6]
Why it matters: The fee alignment keeps servicers current with Bankruptcy Rule 3002.1 amendments, while the cramdown language provides operational clarity around loss‑mitigation paths on recourse/indemnified loans—important for compliance and investor outcomes. [7]
DU® will no longer enforce a 620 floor—effective next week
A previously signaled Selling Guide change is now on the calendar: Desktop Underwriter® will stop applying a minimum credit score and instead rely on DU’s comprehensive risk assessment. For new loan casefiles created on or after Nov. 16, 2025, the 620 minimum for one‑borrower and average‑median 620 for multiple borrowers is removed. The announcement also broadens Day 1 Certainty® to include enforcement relief for certain undisclosed non‑mortgage liabilities, expands credit‑document age leeway for single‑closing construction‑to‑permanent loans, and makes inter vivos revocable trust loans eligible as eMortgages. Several changes tie to DU v12.0 rolling out over the Nov. 15 weekend. [8]
Why it matters: Expect more case‑by‑case underwriting decisions driven by DU’s model rather than a hard score cutoff, potentially improving access for borrowers with thin files or atypical credit histories—subject to DU eligibility and ability‑to‑repay standards. [9]
Refi activity snapshot (RALI): Down week‑over‑week, still strong year‑over‑year
Fannie Mae’s Refinance Application‑Level Index (RALI) for the week ending Nov. 7 shows refi dollar volume −15.9% WoW, but +108.8% YoY. Application count fell 11.5% WoW and rose 69.9% YoY. The next weekly release is scheduled for Tuesday, Nov. 18 at 10 a.m. ET. [10]
Why it matters: Even with a weekly pullback, the YoY gains reflect a more favorable refi window for some borrowers versus late 2024—useful context for capacity planning and rate‑lock strategies. [11]
Policy watch: 50‑year and “portable” mortgages enter the chat
The White House said it is considering government‑backed 50‑year mortgages to tackle affordability, a move economists warn may slow equity build and inflate lifetime interest costs if implemented broadly. In parallel, FHFA is evaluating “portable” mortgages, which could let borrowers carry existing loans (and rates) to new homes, potentially easing the lock‑in effect. Debate remains active across the industry on both ideas. [12]
Why it matters: Either policy would have downstream effects on MBS duration, servicing economics, prepay speeds, and consumer mobility. Stakeholders should watch FHFA’s next steps closely. [13]
Governance & legal: fresh suit and ongoing oversight controversy
New today: An HR‑law trade publication reports a lawsuit alleging Fannie Mae fired an employee while on FMLA leave and shared his confidential ethics complaint with managers he had flagged—claims that, if proven, could carry legal and reputational risk. Fannie Mae had no immediate public comment in the report. [14]
Context this week: Separate investigations in major outlets described firings of Fannie Mae ethics personnel and broader personnel actions amid leadership changes at FHFA; reports say internal probes were redirected to oversight bodies and prompted resignations, fueling concerns about politicization. FHFA leadership has said markets remain stable and protocols are being followed. [15]
Market context and recent results
- Shares of FNMA traded lower intraday today amid broader housing‑policy headlines (prices fluctuate during the session). [16]
- Q3 2025: Fannie Mae reported $3.9B net income on Oct. 29 and posted its Form 10‑Q, offering updated disclosures ahead of today’s operational updates. [17]
What lenders, servicers, and borrowers should do now
- Update guides and training for SVC‑2025‑06—capture the new bankruptcy fee (Dec. 1 effective) and ensure workflows reflect the cramdown/repurchase clarification ahead of the Feb. 1 deadline. [18]
- Prep for DU v12.0: Revisit overlays and pricing grids that referenced a 620 hard floor; recalibrate pipelines and QC to DU eligibility messaging starting Nov. 16 for new casefiles. [19]
- Watch RALI next Tuesday to gauge whether last week’s dip is noise or a trend; align lock‑desk and capacity plans accordingly. [20]
- Scenario plan for policy shifts: Run sensitivity analyses on 50‑year and portable mortgage scenarios (prepay speeds, servicing cash flows, MSR valuations) even while details remain tentative. [21]
The bottom line
On Wednesday, Nov. 12, 2025, Fannie Mae’s operational and data updates were the biggest concrete developments—SVC‑2025‑06 for servicers, SEL‑2025‑09/DU v12.0 for originators, and a RALI snapshot that shows YoY momentum despite a weekly step‑down. In policy, the conversation around 50‑year and portable mortgages is heating up, but implementation details (and market impacts) remain to be seen. Lenders and servicers should prioritize near‑term Guide compliance and DU readiness while keeping a close eye on FHFA’s next moves.
Sources and primary documents
- Fannie Mae Announcement SVC‑2025‑06 – Servicing Guide Update (Nov. 12, 2025). [22]
- Fannie Mae Announcement SEL‑2025‑09 – Selling Guide Updates (PDF; Nov. 5, 2025). [23]
- Fannie Mae Refinance Application‑Level Index (RALI) (posted Nov. 12, 2025 for week ended Nov. 7). [24]
- Associated Press coverage via Boston.com/KBTX on 50‑year mortgages under consideration (Nov. 12, 2025). [25]
- Bloomberg report on FHFA evaluating portable mortgages (Nov. 12, 2025). [26]
- HCAMag report on FMLA/ethics complaint lawsuit (Nov. 12, 2025). [27]
- Washington Post and The Guardian reporting on FHFA/Fannie Mae ethics staff firings (Nov. 10–11, 2025). [28]
- Fannie Mae Q3 2025 earnings release (Oct. 29, 2025). [29]
- MarketWatch intraday price context for FNMA (Nov. 12, 2025). [30]
References
1. singlefamily.fanniemae.com, 2. singlefamily.fanniemae.com, 3. www.fanniemae.com, 4. www.boston.com, 5. www.hcamag.com, 6. singlefamily.fanniemae.com, 7. singlefamily.fanniemae.com, 8. singlefamily.fanniemae.com, 9. singlefamily.fanniemae.com, 10. www.fanniemae.com, 11. www.fanniemae.com, 12. www.boston.com, 13. www.bloomberg.com, 14. www.hcamag.com, 15. www.washingtonpost.com, 16. www.marketwatch.com, 17. www.fanniemae.com, 18. singlefamily.fanniemae.com, 19. singlefamily.fanniemae.com, 20. www.fanniemae.com, 21. www.boston.com, 22. singlefamily.fanniemae.com, 23. singlefamily.fanniemae.com, 24. www.fanniemae.com, 25. www.boston.com, 26. www.bloomberg.com, 27. www.hcamag.com, 28. www.washingtonpost.com, 29. www.fanniemae.com, 30. www.marketwatch.com
