Freddie Mac issued Bulletin 2018-13 (Bulletin), announcing revisions to the Single-Family Seller/Servicer Guide (Guide). As outlined in the Bulletin, Freddie Mac combined the Home Possible and Home Possible Advantage Mortgage offerings into one consolidated Home Possible Mortgage offering and revised requirements under the consolidated Home Possible Mortgage offering. Freddie Mac also revised certain requirements with respect to mortgage eligibility and credit underwriting. Per the revisions, Freddie Mac: updated payment calculation requirements for student loans, revised cash back requirements for “no cash-out” refinance mortgages; updated the time frame for evaluating inquiries on the credit report; removed special delivery requirements for mortgages with borrower income commencing after the Note Date; and extended the effective date for rental income requirements announced in Bulletins 2017-12 and 2018-1. In addition, Freddie Mac: deleted the requirement that Form 71 (Market Conditions Addendum to the Appraisal Report) be provided with all appraisal reports; revised requirements with respect to condominium project insurance; clarified that it is acceptable for third-party originators to perform certain incomplete improvement requirements that are identified as obligations of the seller; clarified that is acceptable for multiple contracts to be combined when determining the purchase price of a mortgage premise for a newly constructed property; specified that a picture of a document may be provided by the borrower to provide verification of income, employment and assets; updated delivery instructions for Home Possible Mortgages originated with gifts and grants from the seller as the originating lender; and postponed the August 13, 2018 Loan Selling Advisor enhancements with respect to the automation of Warehouse Lenders’ release and transfer of interest in pledged mortgages (previously announced in Bulletin 2018-7) until September 10, 2018. The updated time frame from evaluating inquiries on the credit report is effective September 9, 2018. The revised cash back requirements for “no cash-out” refinance mortgages are effective October 27, 2018. The changes with respect to the Home Possible and Home Possible Advantage Mortgage offerings are effective October 29, 2018. The updated payment calculation requirements for student loans are effective November 1, 2018. The effective date for the previously announced rental income requirements is now March 1, 2019 (rather than November 1, 2018). The updated delivery instructions for Home Possible Mortgages originated with gifts and grants from the seller as the originating lender are effective May 20, 2019. All other changes are effective immediately.
VA
VA Offers 40-Year Loan Modification Option
VA issued Circular 26-24-08 to offer a 40-Year Loan Modification option to assist borrowers in reaching an affordable payment in the current environment of rising
April 26, 2024
