Freddie Mac Offers Flexibility For Certain Selling Guide Verification Requirements


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.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.