Seller/Servicer Updates and Reminders Announced Guide Bulletin 2013-23
November 15, 2013
As a result of customer feedback, Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-23 withdraws our recent fraud training requirements until further notice. We also are amending the applicability of our higher-priced mortgage loans (HPML) requirements announced in response to the Consumer Financial Protection Bureau (CFPB) final rule; and announcing implementation of our new Quality Control Information Manager (QCIM) application. Additionally, we are making updates to payment history verification, tax information verification, and Freddie Mac Relief Refinance MortgageSM requirements.
Review today's Bulletin for complete details on these and other Guide revisions and reminders that may impact the way you do business with Freddie Mac.
Originate & Underwrite, Sell & Deliver, and Servicing
- Withdrawing fraud training requirements for third-party vendors. To gain a better understanding of customer feedback and refine the requirements, we are withdrawing fraud training requirements for third-party vendors announced in Bulletin 2013-18 until further notice.
- Complying with applicable laws. You are reminded that Freddie Mac requires you to comply with all applicable federal, state and local laws, ordinances, regulations, and orders. Although you may be in compliance with Freddie Mac requirements, you cannot assume that you also are in compliance with all applicable federal, state and local laws, ordinances, regulations, and orders.
Originate and Underwrite
- Updating payment history verification requirements for manually underwritten mortgages. We are updating requirements for verifying a borrower's payment history for manually underwritten mortgages to provide consistency, reduce redundancies, and manage risk. These changes are effective for mortgages with settlement dates on or after April 1, 2014, but we recommend that you begin implementing them as soon as possible.
Originate & Underwrite and Sell & Deliver
- Updating Relief Refinance Mortgage requirements
- Eligibility date. As announced in our October 22, 2013, Single-Family News Center article, to make our eligibility requirements more transparent to borrowers, we have revised our requirements for Relief Refinance Mortgages to provide that the eligibility of the mortgage being refinanced is now based on the note date instead of the Freddie Mac settlement date.
- Land trusts. In response to Seller questions, we are updating the Guide to confirm that a mortgage owned by Freddie Mac and secured by a property in which the legal and equitable title is held in a land trust is eligible for refinance as a Relief Refinance Mortgage – Same Servicer if all other requirements applicable to Relief Refinance Mortgages – Same Servicer are met.
- Announcing that certain higher-priced mortgage loan (HPML) requirements are applicable to higher-priced covered transactions. In Guide Bulletin 2013-16, we announced certain new mortgage eligibility requirements applicable to HPMLs in response to CFPB's final rule regarding ability-to-repay. We are amending the scope of those requirements to include higher-priced covered transactions, as defined in the CFPB's final rule, instead of solely HPMLs. These requirements pertain to Relief Refinance Mortgages and ARMs with initial periods of seven or 10 years.
Sell & Deliver and Servicing
- Adding Quality Control Information Manager Agreement. With the availability of QCIM, we are adding an agreement for customers using our new QCIM application. QCIM enables users to track performing and non-performing loans through the quality control process.
- Reminders for mortgages originated under energy retrofit programs, including property-assessed clean energy (PACE). We are reminding you that Freddie Mac will not purchase mortgages secured by properties subject to PACE obligations that provide for first lien priority, except for Relief Refinance Mortgages – Open Access originated in accordance with Guide requirements.
Other Guide Updates
Review today's Guide Bulletin for details on other important Guide updates, including:
- Updating tax information verification requirements for borrowers with income derived from sources in Puerto Rico, Guam, and the U.S. Virgin Islands.
- Clarifying signature requirements for security instruments.
- Updating requirements for resubmitting construction conversion and renovation mortgages through Loan Prospector® as announced in Guide Bulletin 2013-11.
- Removing the reference to money order receipts as an acceptable form of payment history documentation for Home Possible® Mortgages.
For More Information
- Review Guide Bulletin 2013-23.
- Contact your Freddie Mac representative.