May 31 Guide Bulletin Recap
June 29, 2011
The changes announced by the May 31, 2011, Guide Bulletin went into effect as of the date of publication and are posted on AllRegs®. The next Guide Bulletin is scheduled for release on July 29, 2011. For your convenience, we’ve highlighted the May 31 changes for the Freddie Mac Multifamily Seller/Servicer Guide (Seller/Servicer Guide) and the Freddie Mac Delegated Underwriting for Targeted Affordable Housing Guide (TAH Guide) below.
For both the Seller/Servicer Guide and the TAH Guide, we:
- Updated our provisions for environmental reports in Chapter 13.
- Revised our requirements for insurance to:
- Provide you with an additional option for collecting insurance escrows for a property with insurance provided by a blanket insurance policy.
- State the requirements for the annual certification of adequate property damage coverage.
- Include more guidance for property damage insurance provided by a blanket insurance policy.
- Standardized our review fee and fee splits for easement requests.
- Added provisions regarding the Multifamily Restricted Vendor List.
In addition, we made the following changes to the Seller/Servicer Guide:
- Added new chapters addressing requirements for forward commitments for our TAH programs using the prior approval model.
- Identified the sections that TAH Sellers will use when preparing prescreen and underwriting packages.
- Simplified our additional financial reporting requirements for Capital Markets Execution (CME) Mortgages prior to securitization.
- Removed the requirement to use the Form 960 CME – Concurrent Transfers of Servicing.
- Made minor revisions to our requirements for TAH Bond Credit Enhancement Mortgages in Chapter 28.
In the TAH Guide, we made minor revisions to our requirements for forward commitments for our TAH programs using the Delegated Underwriting model.
Please contact your Freddie Mac regional representative or relationship manager if you have any questions.