Freddie Mac issued Bulletin 2017-23 (Bulletin), announcing revisions to the Single-Family Seller/Servicer Guide (Guide). As outlined in the Bulletin, Freddie Mac revised certain requirements with respect to appraisals. The revised requirements no longer require a new appraisal in the event the settlement date is more than 120 days after the date of the note. Rather, sellers are now required to warrant that the value of the property is not less than the appraised value (if appraisal obtained), or the estimated value or sales price used to underwrite the mortgage (if ACE appraisal waiver obtained). The revised appraisal requirements also that unlicensed or trainee appraisers may perform appraisal updates (if supervisory appraiser signs the appraisal update). In addition, the Bulletin announces: updated requirements with respect to student loan debt and contingent liabilities for purposes of calculating the monthly debt payment-to-income (DTI) ratio; additional delivery instructions for mortgages with ACE appraisal waivers; removal of obsolete delivery requirements for super conforming mortgages; updated pool maturity and issuance guidelines; clarification of credit score requirements for mortgages sold through the fixed-rate Cash Servicing Released Sales Process; and additional Guide updates to align with changes announced in Bulletin 2017-20 related to requirements for mortgages where assets are used as a basis for repayment. The updated requirements regarding calculation of the monthly DTI ratio and appraisal updates are effective January 18, 2018 (however, sellers may implement the updated requirements immediately). All other updates are effective immediately.
State Compliance Summary
California Amends Foreclosure Laws Under Nonjudical Foreclosure Process
California passed a bill amending several of the state’s foreclosure laws under the nonjudicial foreclosure process. Under the bill, a foreclosure sale must be postponed
October 29, 2024
