Freddie Mac Announces Changes to the Single-Family Seller/Servicer Guide

Freddie Mac announced it made changes to the rules regarding authorized user accounts, super conforming mortgages, the automated cash specified payups process, and the evaluation of self-employment income.

Freddie Mac released Guide Bulletin 2018-15 on September 19, 2018, informing sellers that it would be making changes to its Single-Family Seller/Servicer Guide.  Specifically, in terms of authorized user accounts, sellers were no longer required to review the selected borrower credit report unless the Feedback Certificate contained a message instructing them to do so.  Additionally, Freddie Mac informed sellers it would no longer require super conforming mortgages with loan amounts greater than $1,000,000 be manually underwritten. Instead, super conforming mortgages, regardless of original loan amount, must be submitted through Loan Product Advisor.  Freddie Mac also made enhancements to the automated cash specified payups process previously handled through the Cash Desk’s manual spot bid process.  Moreover, Freddie Mac is no longer requiring sellers to obtain additional documentation or evaluate the income or loss from self-employment income if the income was not used to qualify for the mortgage.