Bulletin: SLS2025005

Bulletins by State or Territory
Bulletins by Country
  • Download
  • Download .pdf
  • Download .doc

Bulletin: SLS2025005

Bulletin Document
V 7
Date: June 10, 2025
To: All Issuing Offices
RE: UNDERWRITING - Important Update - Fannie Mae Multifamily Funding for Multifamily Mortgage Loans-Form 4650

Dear Associates:

This bulletin serves to inform you of a significant update to the multifamily escrow and funding process that directly affects Issuing Offices.

Effective May 13, 2025, Fannie Mae changed its Multifamily Selling and Servicing Guide, modifying the title, closing, and settlement requirements for multifamily mortgage transactions. These changes apply to all loan applications dated after May 8, 2025.

The revised Form 4650 – Title and Closing Requirements for Multifamily Mortgage Loans outlines updated requirements to safeguard Fannie Mae and its Delegated Underwriting and Servicing (DUS) Lenders against fraud and other risks. A DUS Lender is a financial institution approved by Fannie Mae to originate, underwrite, and service multifamily loans under the DUS program.

key change impacting Issuing Offices is that all Funding Functions associated with the DUS multifamily loan product must now be performed by an approved title insurance underwriter unless restricted by applicable law. Stewart Title Guaranty Company (“STG” or “Stewart”), as an approved underwriter, is committed to supporting its Issuing Offices when handling these transactions and complying with these new requirements.

Per Form 4650, Section III.A.1(a)]: https://multifamily.fanniemae.com/media/41986/display

Funding Functions must be carried out by the Title Insurance Underwriter, except where:

  1. Required by statute or court rule to avoid the unauthorized practice of law – in such cases, the Issuing Office may oversee, review, or approve the disbursement process, but the underwriter must still perform the Funding Functions or
  2. Required by statute or court rule in jurisdictions where holding escrow or disbursing loan proceeds is considered the practice of law – in such cases, the Issuing Office may perform the Funding Functions, provided the underwriter oversees and approves all such actions, including preparation of the Settlement Statement.

Definition of Funding Functions:

Funding Functions include:

  • Collecting premiums, escrows, security deposits, sale/loan proceeds, and related funds;
  • Preparing final settlement statements;
  • Disbursing funds in accordance with the Settlement Statement and Closing Instruction Letter;
  • Maintaining receipts and disbursement ledgers.

These requirements do not prohibit Issuing Offices from performing other title services not classified as Funding Functions in connection with the issuance of a Stewart policy. Stewart is available to support your office’s compliance with these new procedures associated with the multifamily escrow and funding process in the Fannie Mae Multifamily DUS lending program Form 4650.

Stewart has set up a Fannie Mae DUS multifamily solutions team. You can connect with this team:

FanniemultifamilyDUSquestions@stewart.com

Fannie Multifamily DUS Issues phone number: 281-275-4418

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.


References

Bulletins Replaced:
  • None
Related Bulletins:
  • None
Underwriting Manual:
  • None
Exceptions Manual:
  • None
Forms:
  • None
  • Download
  • Download .pdf
  • Download .doc