Freddie Mac Issues Bulletin 2017-8: Selling Updates

Freddie Mac issued Bulletin 2017-7 (Bulletin), announcing revisions to the Single-Family Seller/Servicer Guide. Building on the collateral representation and warranty relief announced in Bulletin 2017-3, Freddie Mac introduces a new automated collateral evaluation that provides the seller the option to waive appraisal requirements for certain Loan Product Advisor mortgages. The Bulletin also announces amended condominium project requirements, including: simplified requirements for detached condominium projects; additions to Freddie Mac’s list of ineligible projects; and the elimination of separate underwriting paths for streamlined project reviews. In addition, the Bulletin announces: the addition of Uniform Appraisal Dataset (UAD) condition and quality ratings and level of updating definitions to the Single-Family Seller/Servicer Guide (as new Exhibit 36); that sellers are not required to provide an updated sales contract to an appraiser unless the updated terms impact the physical description or condition of the property; updates to eligibility and appraisal requirements for 1-unit properties with an accessory unit; and that Loan Product Advisor and the Home Possible Income & Property Eligibility tool have been updated to reflect the area median income estimates for 2017. The Bulletin generally went into effect May 31, 2017. However, the new automated collateral evaluation is effective June 19, 2017. The updates to Loan Product Advisor and the Home Possible Income & Property Eligibility tool are effective June 13, 2017. Part of the additions to the list of ineligible projects is effective August 31, 2017 (the remainder are effective May 31, 2017). The updates to eligibility and appraisal requirements for a 1-unit property with an accessory unit are effective August 31, 2017.

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