Freddie Mac issued Bulletin 2022-5 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:
- introduced automated income assessment with Loan Product Advisor (LPA) using account data (direct deposits);
- modified automated income assessment with LPA using tax return data;
- now permits a signed IRS Form 4506-C as an additional alternative to the borrower’s signatures on tax returns;
- removed the Financial Size Category (FSC) requirement for Insurers rated by AM Best and the separate rating requirements for non-U.S. insurers;
- added descriptive language and examples to help determine the property insurance coverage limit requirements for 1- to 4-unit properties;
- added a clarification to the LTV/TLTV/HTLV requirements for condominium unit mortgages that are Home Possible Mortgages;
- specified that Freddie Mac will be the calculation agent for purposes of determining the amounts payable pursuant to the terms of any margin provisions; and
- removed the “Waiver of Borrower’s Rights and Closing Attorney’s Affidavit” Rider checkbox on the Georgia Security Deed (Form 3011, dated 07/2021).
Revisions with respect to enhanced automated income assessment with LPA using tax return data are effective for LPA submissions and resubmissions on and after April 15, 2022. Revisions with respect to the Georgia Security Deed are effective May 1, 2022, (however, lenders may use the revised security instrument immediately). All other updates are effective immediately.
Click to view the Freddie Mac Guide Bulletin 2022-5: https://www.tenaco.com/wp-content/uploads/2022/03/Freddie-Mac-Guide-Bulletin-2022-5-03-02-22.pdf
