Freddie Mac Publishes Selling Guide Bulletin 2020-38

Freddie Mac recently issued Guide Bulletin 2020-38 which, among other things, announces updates to Home Equity Line of Credit (HELOC) calculation options and flexibilities on Planned Unit Development (PUD) Homeowners Association insurance verification.

Bulletin 2020-38 provides a flexibility with respect to HELOC payment amounts to permit the use of 1.5% of the outstanding HELOC balance when the HELOC monthly payment amount is not captured in the mortgage file documentation or in the credit.  In addition, Bulletin 2020-38 updates requirements for property insurance for PUDs and leasehold lessees within a ground lease community.

Moreover, Bulletin 2020-38 announces, among other things, updates to power of attorney related to document custody and updates to eMortgages.