Freddie Mac issued Bulletin 2024-01 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:
- Added specificity regarding the lender’s responsibilities to ensure that the mortgaged premises was covered by adequate insurance;
- Updated credit underwriting guidelines related to age of tax return, trust income, and direct account verification requirements;
- Enhanced the automated income assessment with Loan Product Advisor (LPA) using employed income data directly from the borrower’s paystub and W-2 form;
- Made automated collateral evaluation (ACE) appraisal waivers available for cash-out refinance mortgages;
- For refinance mortgages, updated the requirements for providing estimated values in LPA to require lenders to have written procedures in place that prohibit changes to the estimated property value in Loan Product Advisor for the purpose of obtaining ACE, ACE+ property date report, or more favorable mortgage terms;
- Updated photo requirements for appraisal reports with interior and exterior inspections; and
- Updated Guide Form 1103 (Supplemental Consumer Information Form), regarding homeownership education.
Revisions related to trust income requirements are effective for mortgages with settlement dates on or after May 7, 2024 (lenders, however, are encouraged to implement the revisions immediately). Revisions related to adequate insurance requirements are effective for mortgages with application received dates on or after June 1, 2024 (lenders, however, are encouraged to implement the revisions immediately). Revisions related to providing estimated values in LPA are effective June 6, 2024. Revisions related to photo requirements are effective for mortgages with appraisal effective dates on or after June 6, 2024. All other revisions are effective February 7, 2024.
Click to view the Freddie Mac Guide Bulletin 2024-01: https://www.tenaco.com/wp-content/uploads/2024/02/Freddie-Mac-Guide-Bulletin-2024-1-02-07-24.pdf
