On August 29, Freddie Mac released Guide Bulletin 2018-13, which announces selling updates, including the consolidation of Freddie Mac’s “Home Possible” and “Home Possible Advantage” mortgage programs into a single offering. The Bulletin compares the previous requirements of both programs with the new requirements of the consolidated program, which now allows non-occupant borrowers to be eligible for the program with a loan-to-value ratio less than or equal to 95%. The changes to the revised “Home Possible” mortgage program are effective October 29.
The Bulletin also updates several mortgage eligibility and credit underwriting requirements, including (i) student loan debt payment calculations; (ii) cash back requirements for “no cash-out” refinance mortgages; and (iii) timelines for evaluating credit report inquiries. Additionally, the Bulletin provides an update to the requirements for property, flood, liability and fidelity or employee dishonesty insurance for condominium projects.