Freddie Mac issued Bulletin 2022-10 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:
- Updated payment history requirements for refinance transactions where none of the borrowers on the mortgage being refinanced is a borrower on the new mortgage;
- Specified that “no cash-out” refinance proceeds up to the greater of 1% of the refinance mortgage or $2,000 may be used to pay delinquent real estate taxes; and
- Added specificity related to prorated real estate tax credits paid by the property seller in areas where real estate taxes are paid in arrears.
Revisions with respect to refinance mortgages are effective with settlement dates on or after Sept 6, 2022. All other updates are effective immediately.
Click to view the Freddie Mac Bulletin 2020-10: https://www.tenaco.com/wp-content/uploads/2022/05/Freddie-Mac-Guide-Bulletin-2022-10-05-04-22.pdf
