Fannie Mae and Freddie Mac Implement Numerous Selling Updates, Announce Appraisal Submission Enhancements
On September 14, Freddie Mac issued Bulletin 2012-19, which implements changes to the requirements for Relief Refinance Mortgages announced on July 31, 2012. The Bulletin also notifies sellers that (i) Freddie Mac no longer is purchasing balloon/reset mortgages, (ii) the Selling Guide has been updated to reflect that at least one borrower on a refinance must have held title and resided in the property for the prior twelve months, and (iii) several requirements for the Selling System Servicing Released Sales Process have been updated and revised.
Also on September 14, Fannie Mae announced in Selling Guide Announcement SEL-2012-09 numerous enhancements to the underwriting and documentation policies for Refi Plus and DU Refi Plus loans, including to (i) reduce representation and warranties, (ii) provide an alternative to income verification for certain payment changes, (iii) reduce income and assets documentation, and (iv) provide an alternative qualification method when removing a borrower.
On September 18, Fannie Mae and Freddie Mac announced that the appraisal submission process through the Uniform Collateral Data Portal will be enhanced on October 7, 2012.Fannie Mae, Freddie Mac, Mortgage Origination