Freddie Mac Withdraws Fraud Training Requirement, Updates Various Selling Requirements

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On November 15, Freddie Mac issued Bulletin 2013-23, which withdraws recently announced fraud training requirements and describes various changes to other requirements. Citing the need to assess industry feedback, Fannie Mae withdrew Bulletin 2013-18, which required, among other things, that seller/servicers provide third-party vendors retained to perform functions relating to origination and servicing of mortgages with training on fraud prevention, detection, and reporting. In addition, Bulletin 2013-23 (i) updates payment history verification requirements for manually underwritten mortgages; (ii) announces that previously announced eligibility requirements applicable to higher-priced mortgage loans (HPMLs) are applicable to higher-priced covered transactions (as defined in the CFPB ability to repay/qualified mortgage rule) and not solely to HPMLs; (iii) updates certain requirements for Freddie Mac Relief Refinance Mortgages; (iv) updates requirements for verifying tax information for borrowers with income derived from sources in Puerto Rico, Guam and the U.S. Virgin Islands; and (v) clarifies signature requirements for security instruments.

Topics:  Fraud, Freddie Mac, Higher-Priced Mortgage Loans, Mortgage Loan Originators, Mortgage Servicers, Mortgages, Training, Vendors

Published In: Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates

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.

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