Freddie Mac Offers Flexibility For Certain Selling Guide Verification Requirements

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On December 14, Freddie Mac issued Bulletin 2012-28 (Bulletin), which provides sellers more flexibility with regard to certain required verifications. Under the new policy, Freddie Mac will (i) allow sellers to obtain a verbal verification of employment or a verification of existence of the business, as applicable, after the note date, provided the verifications are obtained prior to the delivery date, and (ii) provide additional options for sellers when documenting the terms of secondary financing, the fees and costs paid in connection with secondary financing and the evidence of subordination of secondary financing to the first lien. The Bulletin also (i) clarifies condominium project review and eligibility requirements, (ii) updates the Single-Family Seller/Servicer Guide (Guide) to reflect the new property valuation requirements for Relief Refinance Mortgages℠ secured by properties affected by disasters, (iii) reminds sellers and servicers about base conforming loan limits and high-cost area loan limits for 2013, and (iv) reminds sellers and servicers who use the services of a warehouse lender that Freddie Mac may refuse to fund or delay funding if the warehouse lender has not submitted acceptable documentation as required in Guide Chapter 19.