Freddie Mac issued Bulletin 2022-14 and Fannie Mae issued Lender Letter LL-2022-02, providing requirements for loans impacted by the Equifax coding issue. Per the Bulletin and Lender Letter, Freddie Mac and Fannie Mae provided data correction requirements based on certain circumstances (including a requirement to obtain a corrected credit score from Equifax for non- Loan Prospect Advisor/Desktop Underwriter [LP/DU]loans). In addition, Freddie Mac and Fannie Mae clarified that:
- lenders are not required to update the credit report and re-underwrite the mortgage (either manually or by resubmitting the loan through LP/DU) based solely on Equifax coding error;
- the inaccurate credit score used in the underwriting of the mortgage does not render the mortgage ineligible for purchase; and
- a repurchase request will not be issued based solely on the inaccurate credit score used in the underwriting of the mortgage.
The Bulletin and Lender Letter are effective June 24, 2022 and apply to conventional mortgages (Freddie Mac) and all mortgages (Fannie Mae) with credit reports containing the Equifax credit score pulled on or after March 17, 2022 and on or before April 6, 2022.
Click to view the Freddie Mac Bulletin 2022-14: https://www.tenaco.com/wp-content/uploads/2022/06/Freddie-Mac-Guide-Bulletin-2022-14-06-24-22.pdf
Click to view the Fannie Mae Lender Letter LL-2022-02: https://www.tenaco.com/wp-content/uploads/2022/06/Fannie-Mae-Lender-Letter-LL-2022-02-06-24-22.pdf
