Freddie Mac
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Freddie Mac Launches Loan Quality Advisor (LQA)
by: Anna DeSimoneIn April 2013, Freddie Mac launced Loan Quality AdvisorSM (LQA) as part of its Greater Purchase Certainty initiative. LQA is a web-based risk and eligibility assessment tool that gives lenders an automated way to identify credit, data, and purchase eligibility issues before loans are delivered to Freddie Mac. By helping lenders spot and […]
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Fannie Mae & Freddie Mac Will Only Purchase Qualified Mortgages in 2014
by: Anna DeSimoneOn May 2, 2013, the Federal Housing Finance Agency (FHFA) directed Freddie Mac and Fannie Mae (“GSEs”) to limit future purchases to:Mortgages that are “qualified mortgages” under the final rule, including those meeting the special or temporary qualified mortgage requirements Mortgages that are exempt from the ability to repay requirements, such as investor […]
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Freddie Mac Updates Servicing Requirements
by: Anna DeSimoneFreddie Mac recently issued two updates to its servicing guidelines: Bulletin 2013-3 on February 13, 2012 and Bulletin 2013-6: on April 15, 2013. Outlined below are the key points to the two bulletins: Bulletin 2013-3 (2/13/13) Effective on the date of the bulletin, Freddie Mae published the following updates and revisions to the […]
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Freddie Mac Issues Changes to ARMs and Affordable Home Programs
by: Michelle PetersCommentary regarding Freddie Mac Bulletin Number 2012-21 On October 16, 2012 Freddie Mac released Bulletin number 2012-21 regarding revisions to ARM requirements and provided updates regarding Home Possible Mortgages. The bulletin details ARM rate caps and qualification requirements that will help reduce the risk of payment shock to borrowers at the time of […]
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Freddie Mac Issues New Quality Control Framework
by: Anna DesimonePresident Today, Freddie Mac Announced Industry Letter, Quality Control and Enforcement Practice, along with Seller/Servicer Guide Bulletin 2012-22. The announcements expanded on the September 11, 2012 Industry Letter regarding quality control and enforcement requirements. The supplemental information pertains to repurchase timeframes, file requests, appeals, subsequent appeals and repurchase alternatives. The bulletin addresses the acceptable payment […]
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FHFA, Fannie Mae and Freddie Mac Launch New Rep and Warranty Framework
by Anna DeSimonePresident In an effort to increase transparency and certainty for lenders, the Federal Housing Finance Agency (FHFA) announced on September 11, 2012 that Fannie Mae and Freddie Mac launched a new representation and warranty framework. The ruling applies to conventional loans sold or delivered on or after January 1, 2013. Please refer to my […]
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Freddie Mac Strengthens Guidelines for Fraud Prevention
by Anna DeSimonePresident On August 21, 2012, Freddie Mac augmented Chapter 57, Fraud Prevention, Detection and Reporting, a new chapter created on June 13, 2012 in Volume 2 of the Seller/Servicer Guide. The new material references previously published requirements regarding fraud prevention published in Volume 1, Chapter 7. Also, in its recent industry bulletins, Seller/servicers were […]
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Freddie Mac Updates Requirements for Pre- and Post-Closing Quality Control
by Anna DeSimonePresident & Founder On December 1, 2011, Freddie Mac had implemented revisions to Chapters 46 and 48 of its Seller Servicer Guide, requiring additional procedures for post-funding quality control for all loans delivered as of 12/1/2011. The revisions strengthened sampling requirements to include targeted and discretionary loans and requiring an occupancy verification for […]
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Best Practices for Borrower Ability to Repay Rules
by Anna DeSimonePresident & Founder About one year ago, I published an article entitled Borrower Repayment Ability on the Radar. The article highlighted the “ability-to-repay” requirement of the Qualified Mortgage (QM) under Dodd-Frank. The article included a matrix of all U.S. states as of that had passed legislation requiring mortgage lenders to determine the borrower’s […]
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Freddie Mac Updates Stable Monthly Income Guidelines
by Sarah LagattollaAssistant Vice President On November 4, 2011 Freddie Mac issued Bulletin 2011-21 regarding changes made to Section 37.13 of the Single Family Seller/Servicer Guide. Updates and additions have been made to this section of the Guide to provide clarification and changes to the topic of stable monthly income. The changes will become effective […]