FANNIE MAE AND FREDDIE MAC CONTINGENT LIABILITY CHANGES

January 10, 2018 by Lara Rausch, V.P. of Products and Training in PRODUCT

Both Fannie Mae and Freddie Mac have updated their policy regarding contingent liabilities or debt paid by others. Previously, both Fannie Mae and Freddie Mac required that in order to exclude a borrower’s debt that is being paid by another party, the other party that was paying the debt had to also be responsible for the liability. However, that is no longer the case for non-mortgage debt for Fannie Mae and for both mortgage and non-mortgage debt for Freddie Mac.

FREDDIE MAC RENTAL INCOME CHANGES

December 21, 2017 by Lara Rausch, V.P. of Products and Training in EDUCATION, PRODUCT

This past August, Freddie Mac released Bulletin 2017-12, in which they announced several changes, both enhancements and restrictions, in regards to rental income. These changes are effective with all settlement dates on and after February 9, 2018, however they will allow implementation of the changes in their entirety immediately. PRMG will be requiring that all loans funded on or after Tuesday, December 26, 2017 follow the new requirements.

FREDDIE MAC ANNOUNCES CHANGES TO SELLER GUIDE

February 28, 2017 by Lara Rausch, V.P. of Products and Training in EDUCATION

Freddie Mac (FHLMC) has announced several upcoming changes to their seller guide, specifically in relation to Assets and Income. With these changes, you will find there are some enhancements for qualifying, as well as some new restrictions/requirements. One of the changes is that FHLMC will be requiring analysis of the business to support that the business has sufficient liquidity and is financially capable of producing stable monthly income for the borrower, similar to Fannie Mae.