Freddie Mac issued Bulletin 2023-11 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:
- Updated underwriting requirements to address borrowers obligated under an IRS installment agreement for the payment of past-due federal taxes;
- Added an allowance for the exclusion of real estate taxes from the monthly housing expense calculation when there is a real estate tax abatement on the property and certain conditions are met;
- Updated settlement date requirements for mortgages sold through the flow channel;
- Retired the definition of “Seasoned Mortgage” and made other editorial changes to align with the retired definition;
- Excluded the cost of unplanned buydowns from the calculation of total financing concessions;
- Revised requirements to allow for the purchase of mortgages from shared equity programs where the sponsoring organization charges a private transfer fee when the homeowner transfers the homeowner’s property to a new, program-eligible buyer (currently prohibited); and
- Updated Exhibit 19A (Credit Fee Cap Eligibility Criteria) to remove a reference to temporary pipeline coverage related to cash-out refinance mortgages.
Revisions with respect to IRS installment agreements and unplanned buydowns are effective for mortgages with settlement dates on or after August 1, 2023. Revisions related to shared equity programs with private transfer fees are effective for mortgages with Note dates on or after July 1, 2023. All other revisions are effective May 3, 2023.
Click to view the Freddie Mac Bulletin 2023-11: https://www.tenaco.com/wp-content/uploads/2023/05/Freddie-Mac-Guide-Bulletin-2023-11-05-03-23.pdf
