Freddie Mac issued Bulletin 2021-16 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:
- Introduced a 30-day seasoning requirement for “no cash-out” refinances;
- Announced a 6-month waiting period for “cash-out” refinances on properties owned by a limited liability corporation or a limited partnership;
- Extended dates related to the age of tax returns (due to the individual tax return extension to May 17, 2021);
- Updated requirements related to the use of future long-term disability for income qualification;
- Added flexibility and clarity with respect to Power of Attorney (POA) requirements;
- Revised requirements related to the treatment of prorated real estate tax credits; and
- Added a requirement that loans selected for quality control include the title commitment.
Revisions with respect to the 6-month waiting period, age of tax returns, and future long-term disability income are effective May 5, 2021. Revisions with respect to the 30-day seasoning requirement, prorated real estate tax credits, and title commitment quality control requirement are effective for mortgages with settlement dates on or after August 5, 2021. Revisions with respect to POA requirements are effective for mortgages with application received dates on or after June 30, 2021.
Click to view the Freddie Mac Bulletin 2021-16: https://www.tenaco.com/wp-content/uploads/2021/06/Freddie-Mac-Guide-Bulletin-2021-16-05-05-21.pdf
