Freddie Mac issued Bulletin 2021-34 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac revised condominium and cooperative project requirements as follows:
- updated the “Exempt From Review” requirement to be consistent with similar project eligibility requirements for Refi Possible℠ Mortgages;
- added a glossary definition for Alternative Dispute Resolution (ADR) proceedings;
- clarified that the use of the project’s funded reserves to pay for project litigation or an ADR proceeding must not violate the applicable jurisdiction’s laws and regulations;
- updated the terms for amenities, common areas, and common elements; and
- updated title insurance requirements to specify that cooperative share loans that are recognized as personal property do not require title commitments or final title insurance policies because title lien searches are generally obtained by lenders.
In addition, Freddie Mac:
- Created 2 new Designated Custodial Agreement forms, and retired 2 existing Custodial Agreement Forms, as a result of Computershare’s replacement of Wells Fargo as a designated custodian;
- Revised a Certificate of Incumbency (COI) requirement to now require 3 authorized employees on COI forms (previously, 2 authorized employees were required); and
- Updated recording tax information on Tennessee security instruments.
Revisions with respect to updated title insurance requirements are effective February 3, 2022. Revisions with respect to Computershare’s replacement of Wells Fargo as a designated custodian became effective November 1, 2021. All other updates are effective immediately.
Click to view the Freddie Mac Guide Bulletin 2021-34: https://www.tenaco.com/wp-content/uploads/2021/11/Freddie-Mac-Guide-Bulletin-2021-34-11-03-21.pdf
