With the August 20 Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-22, we are providing guidance on the use of the 2009 area median income (AMI) estimates to originate mortgages for sale to Freddie Mac. We’ve also updated several Guide forms and exhibits to reflect our requirements, and we are providing Servicers additional guidance on our servicing requirements in response to current market conditions.

Guidance for 2009 AMI estimates

In prior years, the U.S. Department of Housing and Urban Development issued AMI estimates each year. Beginning in 2009, the Federal Housing Finance Agency issues these AMI estimates, which are now available for 2009. You may begin using the new AMI estimates immediately, but you must use them to originate mortgages delivered to Freddie Mac on or after November 1, 2009.

Freddie Mac uses the AMI estimates, among other things, to determine eligibility for our Home Possible® Mortgages. Our pricing incentive for purchase transaction Home Possible Mortgages and other lender-branded affordable mortgages is also based on AMI limits.

Both Loan Prospector® and our Affordable Income Property & Eligibility tool have been updated to reflect the 2009 AMI estimates.

Other Guide changes announced in Guide Bulletin 2009-22

It is important that you are familiar with all the changes announced in Guide Bulletin 2009-22, including the following:

• Guide updates regarding requirements for super conforming mortgages, including:
  • Revisions to the appraisal requirements for super conforming mortgages.
  • Exhibit 25 updates to reflect Loan Prospector risk class and Indicator Score requirements for super conforming mortgages.
  • Updates to reflect that super conforming mortgages may not be pooled in mini-Gold PC pools.
• Clarifying that Initial InterestSM Mortgages are ineligible to be Texas Equity Section 50(a)(6) Mortgages.
• Updates to Guide Form 1077, Fannie Mae/Freddie Mac Uniform Underwriting and Transmittal Summary, to reflect Fannie Mae’s recently revised project classification codes. There is no change in the classification codes for mortgages delivered to Freddie Mac, therefore we will continue to accept the prior version of Form 1077.
• Revisions to Form 16SF, Annual Eligibility Certification Report, to require additional information about a Seller/Servicer’s compliance with Office of Foreign Assets Control and anti-money laundering controls.
• Additional guidance for maintaining and reconciling principal and interest custodial accounts and escrow custodial accounts.
• Additional guidance regarding the negotiation of broker real estate commissions on a short payoff.
• New expense reimbursement codes for attorney fees related to bankruptcy in Exhibit 74, Expense and Income Codes for Form 104SF.

To view the online Bulletin in its entirety, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.