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What's New
Mortgage Products
Underwrite and Process with Loan Prospector
Sell & Deliver Loans
Service Loans
Training and Education
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Important changes to pricing and credit requirements announced in November and December
In November and December, we issued three special Single-Family Seller/Servicer Guide (Guide) Bulletins that introduced changes to our pricing and credit requirements. Following is a synopsis of these changes and their respective effective dates.
November 15 Guide Bulletin
With our November 15 Guide Bulletin [PDF 209K], we announced changes to our pricing and credit requirements in response to continued volatility and turmoil in the mortgage market, and the deteriorating performance of higher-risk mortgage products. Following are several key changes, effective for Freddie Mac settlements on or after March 1, 2008:
- Added a new delivery fee based on Indicator Score and loan-to-value (LTV) ratios.
- Increased existing delivery fee rates for certain higher-risk mortgages.
- Decreased the pricing incentive for purchase transaction Home Possible® Mortgages.
- Revised the delivery fee rate structure for mortgages with 80/10/10 secondary financing and Home Possible Mortgages with secondary financing.
With this Bulletin, we also:
- Reinforced our existing appraisal standards and underwriting expectations related to maximum financing in declining markets.
- Amended our requirements for calculating maximum financing concessions, effective for all mortgages with note dates after March 14, 2008.
December 11 Guide Bulletin
In our December 11 Guide Bulletin [PDF 23K], we announced a new "Market Condition" postsettlement delivery fee as a result of continued deterioration in the credit market. This new "Market Condition" delivery fee rate of 0.250% will apply to all mortgages delivered to Freddie Mac through flow purchase contracts, including mortgages sold with recourse and indemnification, and is effective for all settlements on or after March 9, 2008.
This fee is in addition to all other delivery fees, including those announced in our November 15 Guide Bulletin.
December 21 Guide Bulletin
Through our December 21 Guide Bulletin [PDF 127K], we revised our delivery fee rate structure and delivery fee rates for Initial Interest Mortgages with 75/20/5, 80/15/5, and 90/5/5 secondary financing structures. These changes are effective for settlements on and after May 1, 2008.
With this Bulletin, we also revised our eligibility requirements and warranties for the purchase of Condominium Unit Mortgages, effective for mortgages delivered on or after March 1, 2008. For more information on the requirements changes for Condominium Unit Mortgages, please reference the December 21 Bulletin, future versions of Chapter 42 within the Guide, and our At-a-Glance [PDF 72K] matrix created specifically for these changes.
For More Information
To assist you in understanding and implementing these pricing- and credit-related changes, review our At-a-Glance Reference Chart [PDF [an error occurred while processing this directive]]
and the following resources for more details:
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