Freddie Mac Issues Bulletin 2018-8: Selling Updates

Freddie Mac issued Bulletin 2018-8 (Bulletin), announcing revisions to the Single-Family Seller/Servicer Guide (Guide). Per the Bulletin, Freddie Mac: updated Enhanced Relief Refinance Mortgage requirements (including the establishment of a Credit Fee in Price cap structure, and an increased minimum loan-to-value ratio for mortgages secured by 1-unit primary residences); revised delivery requirements for Freddie Mac HomeOne mortgages; clarified underwriting requirements with respect to income stability and credit inquiries; revised Form 960 – Agreement for Concurrent Transfer of Servicing of Single-Family Mortgages to require sellers completing a concurrent transfer of servicing transaction to identify whether eMortgages are included in the transaction, and if so, to designate the document custodian; updated access management provisions of the Master Systems License (in preparation for the future availability of Freddie Mac Access Manager); and removed the seller’s option to elect the super accelerated remittance cycle (Super ARC) for fixed-rate mortgages sold to Freddie Mac under the Cash, Guarantor and MultiLender Swap programs. The revised delivery requirements for Freddie Mac HomeOne mortgages is effective July 29, 2018. The revisions to Form 960 are effective October 1, 2018. The Credit Fee in Price cap structure is effective January 1, 2019. All other changes are effective immediately.

Click Here to View the Freddie Mac Guide Bulletin 2018-8