Freddie Mac issued Bulletin 2026-7 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:

• Updated credit underwriting requirements related to:
  • Non-self-employed income for borrowers with business ownership less than 25%, including expanded requirements for Schedule K-1 guaranteed payments;
  • To self-employed income for borrowers with less than a two-year history of self-employment;
  • The Freddie Mac income calculator and Loan Product Advisor automated income assessments; and
  • Expansion of data representation and warranty relief eligibility with the Freddie Mac income calculator;
• Specified that requirements for properties with incomplete improvements apply to site-built homes that are newly built or constructed and to existing site-built homes;
• Expanded eligibility requirements for properties with incomplete improvements to permit mortgages secured by manufactured homes and mortgages with a property data report;
• Relocated GreenCHOICE Mortgages and CHOICERenovation Mortgages with incomplete improvements and settlement dates prior to the completion of improvements to their respective guide sections;
• Expanded renovation mortgages’ eligibility requirements to permit mortgages secured by a manufactured home;
• Updated Guide Exhibit 4A (Single-Family Uniform Instruments) to reflect that the Virginia Deed of Trust (Form 3047 07/2021) and the California Deed of Trust (Form 3005 07/2021) were revised to include a new paragraph reflecting changes in State laws addressing divorce-related mortgage assumptions in response to Virginia House Bill 304 and

California Assembly Bill 3100, respectively;

• Updated Guide Exhibit 4A (Single-Family Uniform Instruments) to reflect that the California Short Form (3005-SF) was revised to reference the new paragraph 30; and
• Restored requirements that lenders comply with the applicable offering’s underwriting and IRS Form 4506-C requirements related to the refactoring of Sections 5302.3 (Third-Party Verification Service Providers: Employment and Income Verifications) and 5302.5 (Internal Revenue Service (IRS) Form 4506-C Requirements for all Income and Asset Qualification Sources), announced in Bulletin 2025-9, which were inadvertently modified related to use of third-party employment and income verification reports and Internal Revenue Service (IRS) Form 4506-C for offerings with an automated assessment.

Originators may begin using the revised Virginia Security Instrument for mortgages with Note dates on or after July 1, 2026 and the revised California Security Instruments for mortgages with Note dates on or after January 1, 2027. All other revisions went into effect June 3, 2026.

Click to view the Freddie Mac Guide Bulletin 2026-7: https://www.tenaco.com/wp-content/uploads/2026/06/Freddie-Mac-Guide-Bulletin-2026-7-06-03-26.pdf