Guide Bulletin 2017-11: Lender Gifts and Grants for Home Possible Mortgages and Agency-Provided Funds
July 26, 2017
With Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-11, our requirements for Home Possible® mortgages will now specify that gifts or grants from the Seller as the originating lender will be permitted only after a contribution of at least three percent of value from borrower personal funds or other eligible sources of funds.
These changes were previewed in our July 6 Industry Letter, and are effective for mortgages with settlement dates on and after November 1, 2017.
- Updating our requirements for agencies that provide funds for mortgages. Effective for mortgages with settlement dates on and after November 1, 2017.
- Clarifying delivery requirements for Home Possible mortgages that feature lender-funded gifts or grants. Effective immediately.
For more detailed information on these and other changes, please read
Guide Bulletin 2017-11.
For More Information:
- Visit Freddie Mac’s Learning Center for more on our training programs and reference tools.
- Contact your Freddie Mac representative.