New Guide Bulletin Published
December 29, 2016
With this Bulletin for the Multifamily Seller/Servicer Guide (Guide), we are highlighting the following changes:
- Effective January 1, 2017, Freddie Mac requires that all Seller/Servicers meet the minimum requirements of the federal flood insurance statues. The maximum deductible allowance has been updated to reflect current market conditions. When the National Flood Insurance Program’s (NFIP) policies are used to provide part of the flood insurance coverage, the maximum deductible available under the NFIP is acceptable. These changes affect underwriting packages submitted on or after January 1, 2017, as well as insurance renewals for loans already in process or purchased on or after January 1, 2017.
- We are reinstating provisions in Chapter 31 for small balance loans (SBLs) that were previously part of the SBL Addendum. Effective for insurance renewals and underwriting checklists submitted on or after January 1, 2017, the SBL Seller/Servicer must comply with:
- The stated earthquake insurance requirements in Section 31.9
- All documentation, delivery and servicing requirements of Sections 31.2 through 31.28
If you have any questions about this Bulletin, please review the Guide Bulletin Update or call your Freddie Mac representative.