Updates at Freddie Mac include a reduction in delivery fees for first-time homebuyers, changes to reserve requirements and adjustments to servicing reimbursements.
The delivery fee for purchase transactions through the Home Possible Mortgage program is being cut to 75 basis points.
Freddie said the move is being made to support first-time homebuyers, regardless of their income levels.
The changes, which are immediately effective, were detailed in bulletin 2014-2.
On Home Possible refinances, the delivery fee remains 150 BPS.
Reserves required for Freddie Mac borrowers had been based on the principal, interest taxes and insurance — or PITI.
But reserves will now be calculated based on PITI plus mortgage insurance premiums, leasehold payments, homeowners associations dues and payments on secondary financing.
Appraisals had been required to be no more than 60 days older than the note date when used to document the value of a primary residence pending sale or being converted to a second home or investment property for the purpose of establishing minimum required reserves. Freddie is removing the 60-day requirement.
Borrowers who move out of an owner-occupied two- to four-unit property and need the additional rental income for the newly rented unit had previously been required to maintain an additional six months’ reserves. But Freddie is removing the additional reserves requirements.
Beginning March 1, mortgages can be resubmitted to Loan Prospector up to 120 after the “Loan Prospector Assessment Expiration Date” in effect as of the note date.
On the servicing side, the McLean, Va.-based firm is adjusting the amount it will reimburse for HOA fees in “super lien” states. Note dates on or after Feb. 14 are impacted.
Freddie also said its Form 16SF will be updated by the end of this month to improve usability and provide additional functionality.
