Freddie Mac issued Bulletin 2022-23 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:
- Enhanced Loan Product Advisor (LPA) to allow the use of a borrower’s cash flow in LPA’s credit assessment if at least one borrower on the transaction has a usable credit score and at least 12 months of account data is transmitted to LPA;
- Specified that credit card reward points are an eligible source of funds used to qualify a borrower if the points are redeemed for cash;
- Expanded eligibility requirements to allow the sale of community land trust mortgages secured by 2-unit primary residences;
- Extended the date for required use of the 2021 ALTA title insurance policy forms from January 1, 2023 to January 1, 2024;
- Updated Guide Exhibit 4A (Single Family Uniform Instruments) to revise the version date for the Delaware Mortgage instrument and the Washington Deed of Trust, and to add an updated version of the Multistate Construction Conversion Modification Agreement;
- Instructed lenders to contact the Customer Support Contact Center rather than the lender’s Freddie Mac representative to request removal from the early pool disclosure contract of a mortgage that was paid off during the Settlement Cycle for single-issue guarantor contracts created on and after December 5, 2022; and
- Removed MyRA from the examples of Internal Revenue Service-qualified employer retirement plan accounts as the program has ended and is no longer available.
Revisions with respect to the use of a borrower’s cash flow in LPA’s credit assessment are effective for mortgages with LPA submission or resubmission dates on or after November 6, 2022. Revisions with respect to the early pool disclosure contact information are effective December 5, 2022. All other revisions are effective November 2, 2022.
Click to view the Freddie Mac Guide Bulletin 2022-23: https://www.tenaco.com/wp-content/uploads/2022/11/Freddie-Mac-Guide-Bulletin-2022-23-11-02-22.pdf
