Freddie Mac issued Bulletin 2020-38 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac updated requirements related to the following:
- Home equity line of credit (HELOC) monthly payment calculation options;
- Homeowners Association insurance verification for Planned Unit Developments (PUDs);
- Document custody requirements for mortgages and eMortgages executed by a power of attorney; and
- Electronically recorded closing and post-closing documents.
Revisions relating to HELOCs are effective for mortgages with settlement dates on or after November 5, 2020 (however, sellers may implement the updates immediately). The document custody updates are effective January 4, 2021 (however, sellers are encouraged to implement the changes as soon as possible). Updates relating to electronic documentation are effective October 14, 2020. All other updates are effective immediately.
Click here to view the Freddie Mac Bulletin 2020-38: https://www.tenaco.com/wp-content/uploads/2020/10/Freddie-Mac-Bulletin_2020-38.pdf
