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Guide Bulletin 2014-15: Updates Align with Industry Regulations and Practices

August 14, 2014

Today's Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-15 announces selling and servicing updates that may impact the way you do business with Freddie Mac. Key changes are summarized in this email.

  • Mortgages insured by Arch Mortgage Insurance Company. If you sell mortgages insured by Arch Mortgage Insurance Company, the selling system will begin accepting "Other-ArchMI" as a valid value on October 20, 2014. 
  • Suspicious Activity and anti-money laundering (AML) noncompliance reporting. If you are subject to the AML requirements of the Bank Secrecy Act, effective October 1, 2014, you must report to Freddie Mac, as permitted by law, instances of AML program noncompliance. In addition, all Seller/Servicers must develop internal controls, policies, and procedures to detect and report Suspicious Activity as defined in the Guide.
  • Updates to counterparty eligibility. Wholly owned subsidiaries of Seller/Servicers that are federally regulated depository institutions are required to have a separate Freddie Mac approval to do business with Freddie Mac. Such subsidiaries must submit an application for approval by October 15, 2014.
  • Updates to flood insurance requirements. For 1- to 4-unit properties, flood insurance coverage may be waived for structures on the mortgaged premises that are detached from the primary residential structure and do not serve as a residence.
  • Updates related to ULDD. Based on customer feedback, we are clarifying existing Uniform Loan Delivery Dataset (ULDD) Phase 1 and 2 data points. These updates will be included in the ULDD specification addendum scheduled for release next month.
  • Certificate of incumbency forms. We've changed our certificates of incumbency for Sellers and warehouse lenders to make the forms easier to use. These updated forms must be used on or after October 1, 2014, but are now available for your immediate use.
  • Requirement updates for manufactured homes. The Department of Housing and Urban Development (HUD) Data Plate and HUD Certification Label must both be present to evidence the manufactured home is built in compliance with the HUD Code. We’re also providing alternative sources that may be used as evidence of compliance.

Please read the Bulletin for detailed information on these and other updates.

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