Congress introduces new legislation to protect consumer data

Congress introduces new legislation to protect consumer data

January 23, 2006

Freddie Mac issues single-family seller/servicer guide bulletinMortgagePress.comFreddie Mac,single-family seller/servicer guide bulletin
Freddie Mac has issued a single-family seller/servicer guide
bulletin. The bulletin announces and discusses a number of changes
to its seller/servicer requirements. Unless otherwise stated below,
the following changes are effective immediately. In particular, the
bulletin notifies sellers and servicers that Freddie Mac is:
†Revising flood insurance coverage requirements for
mortgages sold to and serviced for Freddie Mac;
†Announcing the eligibility of initial-interest mortgages and
limited buy-down and extended buy-down mortgages for sale through
the Freddie Mac selling system;
†Revising post-settlement delivery fee rates for mortgages
with secondary financing by reducing the delivery fee rates for
mortgages that are not initial-interest mortgages or Home Possible
mortgages (effective Sept. 1, 2005), and increasing the delivery
fee rate for initial-interest mortgages (effective Dec. 1,
†Making various appraisal-related changes to the
organization, structure and content of chapters of the
seller/servicer guide that discuss general mortgage eligibility,
manufactured homes, appraisal reports, inspection reports and the
no-appraisal market adjustment factor. The majority of these
changes are effective, immediately. Two specific changes regarding
the appraisal requirements section and the manufactured homes
appraisal report are effective for mortgages with appraisal reports
that have effective dates on or after Jan. 1, 2006;
†Providing more specific recommendations on steps sellers can
take to ascertain the condition of properties located in areas that
may be impacted by a disaster;
†Updating language related to borrower qualification for
limited buy-down and extended buy-down mortgages;
†Providing revised adjustable-rate mortgage (ARM) notes and
new ARM riders for use with initial-interest ARMs. Sellers must use
the revised notes and riders for all initial-interest ARMs with a
10-year interest-only period, originated on or after Nov. 1,
†Announcing new and revised Fannie Mae/Freddie Mac uniform
instruments for Puerto Rico. These instruments must be used for
mortgages, originated on or after Jan. 1, 2006;
†Revising the directions for completion of the rate spread
field on Form 11, Mortgage Submission Schedule, and Form 13SF,
Mortgage Submission Voucher, to improve data accuracy. Freddie Mac
sellers must deliver the rate spread in accordance with these
revisions, on and after Oct. 10; and
†Making technical revisions to several forms to provide
additional space in certain cells and to require additional
borrower information and documentation.
Freddie Mac is also revising requirements for remitting payment
for broker price opinions ordered in connection with cancellation
of borrower-paid mortgage insurance. These revisions became
effective on Jan. 1, 2005.
For more information, visit