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Temporary Selling Requirements for Properties Impacted by Hurricane Harvey

September 7, 2017

As communities across the southeast begin to rebuild after the widespread devastation caused by Hurricane Harvey, we're committed to helping you and your borrowers navigate the loan process during this difficult time.

With Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-16, we're announcing temporary changes to our selling requirements for mortgages secured by properties located in Eligible Disaster Areas that were impacted by Hurricane Harvey. The changes are effective for mortgages that have application received dates on or before, and note dates after August 25, 2017.

Extending Age of Documentation Requirements

  • Property valuation documentation, including the point value estimate from Home Value Explorer® (HVE) or the new appraisal, as applicable, must be dated no more than 180 days before the note date.
  • Underwriting documentation, including, but not limited to, Loan Product Advisor® feedback certificates, credit reports, verifications of income, employment and sources of funds, must be dated no more than 180 days before the note date.

The Bulletin also provides:

  • A reminder of the Freddie Mac Relief Refinance MortgagesSM   policy for properties impacted by disasters
  • A reminder of Freddie Mac's employment verification requirements
  • Specific requirements and guidance related to mortgages secured by properties located in Eligible Disaster Areas impacted by Hurricane Harvey, including:
    • Information related to properties damaged by the hurricane
    • Acceptability of Automated Collateral Evaluation (ACE) appraisal waivers
    • Collateral representation and warranty relief
  • Information on system updates
  • Guidance regarding cash contracts

Please note we're closely monitoring Hurricane Irma and other natural disasters and will provide additional guidance as necessary.

Thank you for the work you're doing to assist borrowers in coping with natural disaster-related hardships.

For More Information

  • Read Guide Bulletin 2017-16
  • Visit the Natural Disaster Relief web page
  • Contact your Freddie Mac representative