The Federal Home Loan Mortgage Corp. has changed its reporting requirements for seller-servicers. Other updates impact multi-unit residential properties and income on refinances.
When a seller-servicer learns that one of its officers, employees or board members has pled guilty “indicating lack of integrity,” it is required to notify Freddie immediately.
The same is required when a seller-servicer is notified that law enforcement or another governmental authority is conducting an investigation or prosecution.
The secondary lender covered the changes in Bulletin 2014-6.
Freddie needs to be notified right away when a seller-servicer learns of a mortgage fraud guilty plea by someone involved in a Freddie Mac loan.
“Prior to this bulletin, seller/servicers were required to notify Freddie Mac only when they were notified of a civil judgment or criminal conviction,” the notice said. “We are adding “guilty plea” to cover the period between a defendant’s guilty plea and the date on which the defendant is convicted.”
Borrowers are no long required to maintain six months’ rent-loss insurance on two- to four-unit primary residences.
However, investor borrowers who used rent to qualify for the loan will still be required to maintain six months’ rent-loss insurance.
Another change is Freddie’s allowing the use of unemployment insurance to qualify for Freddie Mac Relief Refinance Mortgages — Same Servicer regardless of the term of the unemployment. The same goes for Relief Refinance Mortgages — Open Access.
The updates are immediately effective.
