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Freddie Mac Selling and Guidance Updates

Freddie Mac will implement new changes and continue their temporary bulletins

implemented in March in response to the COVID-19 pandemic. The requirements are effective immediately and are not expected to change until further notice.

  • Purchasing mortgages through Freddie Mac is now limited to mortgages with Settlement Dates no more than six months after the Note Date or for Construction Conversion. Renovation Mortgages are limited from the effective date of the permanent financing.

  • Purchases of mortgages through the bulk sales unit have been suspended.

  • If a Seller discovers they have sold to Freddie Mac a "mortgage in forbearance," the Seller must report the finding to Freddie Mac within 30 days of the discovery.

The temporary requirements and flexibilities which went into effect with the following Bulletins have been extended to Mortgages with Application received Dates through June 30, 2020:

For borrowers and lenders guidance and reminders of deadlines, the GSEs have suggested the following:

  • Compensation and assistance received through the Unemployment Insurance Provisions provided in the CARES Act are considered temporary in nature. It does not meet the necessary requirements to be considered a source of income for qualifying.

  • Furloughs and Layoffs do not meet the requirements of temporary leave under Section 5303.5 of the guidelines. Even if the employer-initiated action has a defined return date, the requirements of the section do not extend to these actions.

  • The 2019 tax return will be required for mortgages with LPA initial submission dates on or after August 1, 2020 due to the extension of the IRS federal tax return filing date.


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