Freddie Mac Announces Selling Changes
June 25, 2010
Recently, Freddie Mac issued Bulletin 2010-13 to amend the Single-Family Seller/Servicer Guide related to Planned Unit Developments (PUDs), Freddie Mac Relief Refinance Mortgages, and interested party contributions. All of the changes in the bulletin are effective immediately, unless otherwise indicated.
Freddie is rescinding project review requirements announced in Bulletin 2009-24, for mortgages secured by units in PUDs and reverting back to the prior eligibility requirements, with the exception of the PUD appraisal requirements and the allowance of reciprocal project reviews, which remains in effect.
Freddie has revised the requirements for Relief Refinance Mortgages to permit the omission of a borrower, for any cause, and require that the omitted borrower must be removed from the deed and may not retain any ownership interest in the mortgaged premises. Freddie is allowing the addition of a borrower, provided that at least one borrower(s) from the refinanced mortgage is retained. A non-occupying borrower may not be added to a mortgage secured by a primary residence.
Freddie is changing its eligibility requirements related to the types of permissible interested party contributions for mortgages eligible for sale to Freddie. Funds paid by the property seller that are fees or costs customarily paid by the property seller are not subject to the maximum financing concession limitations.