FHLMC Guide Bulletin 2015-4 Selling Updates
On April 9, Freddie Mac released an update titled Guide Bulletin 2015-4: Selling Updates.
More Business Opportunities and Flexibilities with Guide Bulletin 2015-4 Changes
You’ll have new opportunities to reach more borrowers with the requirement updates we announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-4. We also introduced a number of changes that will make it easier for to you to manage your business with Freddie Mac.
Following are some of the expanded opportunities included in the Bulletin:
Expanded use of Affordable Seconds®. We’re permitting Affordable Seconds as a secondary financing option for all eligible first lien mortgages, in addition to Home Possible® Mortgages. We’re also adding more flexibility to our requirements for mortgages with Affordable Seconds.
Changes to these requirements are effective for eligible mortgages with Freddie Mac settlement dates on or after May 11, 2015. The selling system will be updated on May 11, 2015, to support this expansion.
Updated reserves requirements for Loan Prospector® mortgages. In an upcoming release, Loan Prospector will be enhanced to calculate the amount of required reserves for the subject property and the Loan Prospector Feedback Certificate will state these required reserves. In general, you’ll only need to verify the amount of reserves stated on the Feedback Certificate. However, there are circumstances, as described in the Bulletin, when additional reserves are required. You must determine and verify the additional required reserves in those circumstances.
We’re also revising our requirements for resubmission to Loan Prospector. A resubmission is not required if the amount of verified reserves decreases as long as the amount of reserves is equal to or greater than the amount of reserves required on the Feedback Certificate.
These updated requirements are effective for all Loan Prospector submissions and resubmissions on or after July 19, 2015, and will help streamline your origination process. You’ll receive more details about the Loan Prospector enhancements in a future communication.
Expansion to our condominium project eligibility criteria. We’ve expanded our project eligibility criteria relating to non-residential project space, single-investor concentration and delinquent assessments. In addition, we’ve modified our eligibility criteria for projects subject to litigation.
We’ve also clarified that projects with a mix of attached and detached condominium units may be eligible for streamlined reviews and we’ve eliminated our “spot” loan requirements for these reviews.
With these changes, more condominium projects could meet our eligibility requirements, providing you with more opportunities to support condominium unit buyers.
More eligible electronic documents. As your business continues to move towards paperless transactions, we now allow the use of electronic closing documents (other than the note) for mortgages you sell to Freddie Mac. We’ve also streamlined our due diligence requirements for the systems you use to conduct electronic transactions with us and to create electronic documents.
Uniform Loan Delivery Dataset (ULDD) Updates. Today, we published the first quarter 2015 ULDD Addendum. We updated Guide Chapter 17, Mortgage Delivery Instructions, to be consistent with the ULDD Addendum.
Additional Guide Updates
With Guide Bulletin 2015-4, we also announced other important Guide changes including revisions to and clarification on:
- Guide Form 906, Freddie Mac Loan Coverage AdvisorSM Authorized User Role Form.
- Property valuations and appraisals.
- Review our Summary of Upcoming Requirement Changes [pdf] to stay on top of upcoming requirement changes by effective date.
- If you haven’t already done so, sign up for Loan Coverage Advisor access. It’s our free application that calculates and tracks the selling representation and warranty relief date for loans you’ve sold to Freddie Mac.
- Sign up for the Single-Family Week in Review for quick access to a recap of important announcements from the prior week, as well as other helpful resources.
For More Information
- Read Guide Bulletin 2015-4 [pdf].
- Review our Affordable Seconds Webpage.
- Check out opportunities [pdf] in condominium financing and training on our requirements.
- Review our FAQs on electronic signatures and transactions.
- Contact your Freddie Mac representative.
Please click here to view the online update.
Please click here to view Guide Bulletin 2015-4 [pdf].
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.