Announcement
Fannie Mae Removes Acceptability Requirement for Certain ARMs
December 10, 2025
Today, Fannie Mae removed the 3% acceptability requirement for 7- and 10-year adjustable-rate mortgage (ARM) loans. Lenders may take advantage of this change immediately.
Prior to this change, lenders were required to determine whether an ARM loan was acceptable for purchase by Fannie Mae by subtracting the initial note rate of the loan from the fully indexed rate in effect when the loan originated. The difference could not exceed 3%.
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