Freddie Mac issued Bulletin 2017-26 (Bulletin), announcing revisions to the Single-Family Seller/Servicer Guide (Guide). As outlined in the Bulletin, Freddie Mac revised certain requirements with respect to credit underwriting and mortgage eligibility. The revisions: permit Sellers to originate 5/5 ARMs in connection with Home Possible Mortgages, Freddie Mac Relief Refinance Mortgages and Financed Permanent Buydown Mortgages; and, with respect to Home Possible Mortgages, remove the requirement that all income reported on the application be verified by Freddie Mac (the Seller must use income used to qualify the borrower to establish that the income limits are not exceeded). The Bulletin also announces that Freddie Mac will now purchase Texas Equity Section 50(a)(6) ARM loans (Freddie Mac previously restricted purchases to fixed-rate mortgages only). Sellers must originate Texas Equity Section 50(a)(6) ARM loans using the Texas Equity Uniform Instruments referenced in the Guide. In addition, the Bulletin announces: that Loan Product Advisor has been enhanced to calculate the additional reserves required when a property is a second home or investment property (the Seller is no longer required to manually calculate the additional required reserves); the addition of language prohibiting Seller/Servicers from engaging in discriminatory business activities; revisions to cooperative share terminology (references to “Cooperative Share Mortgage” have been changed to “Cooperative Share Loan” and the use of certain terms have been standardized); updated language affirming the prohibition against Seller/Servicer sharing of the Freddie Mac Exclusionary List with related third parties, except as expressly permitted; and clarification of Seller/Servicer responsibility for actions of related third parties, regardless of whether Freddie Mac facilitates the seller/servicer-related third party relationship. The updated references to the Selling System are effective December 11, 2017. The added language with respect to discriminatory business activities is effective March 15, 2018. All other updates are effective immediately.
Fannie Mae
Fannie Mae Issues Servicing Guide Announcement SVC-2024-06
Fannie Mae issued Servicing Guide Announcement SVC-2024-06 (Announcement), setting forth updates to the Servicing Guide. Per the Announcement, Fannie Mae clarified requirements related to eMortgages.
November 14, 2024
