Freddie Mac: FHLMC Guide Bulletin 2019-16: Selling Updates
July 10, 2019
Source: Freddie Mac
AGE OF DOCUMENTATION FOR MORTGAGES SECURED BY PROPERTIES IN ELIGIBLE DISASTER AREAS
Effective October 27, 2019
Currently, Freddie Mac assesses the impact of a disaster and, if necessary in its determination, implements its major disaster plan via a Guide Bulletin, which extends certain flexibilities and special requirements to Mortgages secured by properties in specified disaster areas.
To streamline our requirements and provide certainty when a disaster strikes, effective for new disasters that occur on and after October 27, 2019, we will automatically allow the age of documentation flexibilities to apply to all Eligible Disaster Areas. The flexibilities will remain in effect for six months from the disaster declaration date announced by the Federal Emergency Management Agency (FEMA). As a result of this update, Sellers will have more flexibility for extended age of documentation requirements without waiting for a Guide Bulletin announcement.
Effective with the extension of the age of documentation flexibilities to all Eligible Disaster Areas on or after October 27, 2019, the Guide provisions regarding Freddie Mac’s announcement and implementation of its major disaster plan will be removed.
To take advantage of the age of documentation flexibility, Sellers must deliver ULDD Data Point Investor Feature Identifier (Sort ID 368) and enter the valid value of “H37” indicating the extended age of documentation for Eligible Disaster Areas. This special delivery requirement is found in new Section 6302.44.
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