Freddie Mac issued Guide Bulletin 2021-11, announcing an updated eligibility requirement for mortgages secured by investment properties or second homes. Per the Bulletin, a manually underwritten mortgage is ineligible for purchase by Freddie Mac if the mortgage is secured by an investment property or second home with a settlement date on and after May 1, 2021. This restriction does not apply to a manually underwritten Enhanced Relief Refinance mortgage. A mortgage that was submitted to Loan Product Advisor and received a Risk Class of Accept is still eligible for purchase. In addition, Freddie Mac announced that, effective April 15, 2021, a non-Loan Product Advisor mortgage secured by an investment property or second home that was submitted to Loan Quality Advisor will receive a risk assessment result of “Yellow – High Likelihood of Caution”. A mortgage that is re-submitted to Loan Quality Advisor’s Risk Assessment service on or after April 15, 2021 will receive a “Yellow” Risk Assessment result regardless of the result of the previous submission and will be ineligible for sale to Freddie Mac.
Click to view the Freddie Mac Bulletin 2021-11: https://www.tenaco.com/wp-content/uploads/2021/04/Freddie-Mac-Guide-Bulletin-2021-11-03-31-21.pdf
