Update on Rental Income Changes and MI Master Policies
January 10, 2018
We value the feedback we receive from our Sellers. As a result, we’re extending the effective date for the revised rental income requirements announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-12.
The revised requirements will now be effective for mortgages with Freddie Mac settlement dates on and after November 30, 2018, rather than February 9, 2018, as originally announced.
We will update the Guide to reflect the new effective date when we issue a Bulletin later this month.
The extension will provide us the opportunity to further review your feedback and consider if there are requirements that could be fine-tuned through additional specificity and/or revision for your ease of use.
You may continue to originate, underwrite and deliver loans based on the existing rental income requirements published in the Guide (either those announced in Bulletin 2017-12, in their entirety or those that were in effect prior to Bulletin 2017-12, in their entirety).
MI Companies to Revise Their Master Policies
Under the direction of the Federal Housing Finance Agency, Freddie Mac and Fannie Mae (GSEs) collaborated with mortgage insurance (MI) companies to revise the GSE Rescission Relief Principles. We are now working with our approved MI companies to incorporate these updated principles into new master policies which are expected to be implemented by the end of 2018.
The revised principles are designed to more closely align the rescission relief provisions in MI master policies with the requirements of the GSE representation and warranty relief framework.
No action is required from Seller/Servicers at this time. The GSEs will coordinate with the MI companies on an implementation date and notify our customers as appropriate.