Guide Bulletin 2017-28: New Opportunities Related to Representation and Warranty Framework, Income Used for Qualifying, Land Trust Mortgages and Other Updates
December 14, 2017
With Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-28, we’re announcing requirement changes that offer new flexibilities and opportunities for you and your borrowers. The updates include the following:
- Mortgages subject to a disaster-related forbearance plan during the applicable payment history period under the selling representation and warranty framework may qualify for relief from Freddie Mac’s enforcement of certain selling representations and warranties.
- We’re expanding our requirements for qualifying borrowers with income that will start after the note date.
- Land Trust Mortgages are now eligible for sale under the Guide, eliminating the need for a negotiated term of business.
- We’re updating the Guide to reflect the increase in loan limits in 2018.
The Bulletin also includes other Guide updates and reminders related to:
- Credit fee in price for Home Possible® Mortgages that are 5/5 ARMs
- Texas Equity Mortgages and eligibility for sale, including the use of revised forms and a no-purchase period for these mortgages from January 1-12, 2018
- Phase 3 requirements of the Uniform Loan Delivery Dataset
Review Guide Bulletin 2017-28 for details on these updates.