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FHLMC July 21st Industry Letter |
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Friday, 21 July 2006 |
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On July 21st, Freddie Mac released it's July 21st
Industry Letter.
With this Industry Letter, Freddie Mac is reminding
its Sellers of the requirements for providing complete and accurate
data for all mortgages and highlights the provisions requiring
that:
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Mortgages secured by Manufactured Homes (one-unit
dwelling built on a permanent chassis in accordance with the
National Manufactured Construction and Safety Standards Act as
promulgated by the Department of Housing and Urban Development
(HUD) and affixed to a permanent foundation) be properly identified
when submitted to Loan Prospector and sold to Freddie
Mac. In addition, the Letter provides guidance regarding the
property type categories to be utilized when submitting to Loan
Prospector and the forms and codes to be utilized when the mortgage
is sold to Freddie Mac.
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Mortgages with secondary financing be
properly identified and information regarding secondary financing
sources and amounts for those Mortgages be provided when these
Mortgages are sold to Freddie Mac
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Mortgages secured by a unit in a condominium
hotel are ineligible for purchase by Freddie Mac.
In addition, the Letter outlines;
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Requirements for the seller at delivery of
a Condominium Unit Mortgage pursuant to a streamlined
review
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Requirements for condominium unit mortgages secured
by second homes eligible for sale to Freddie Mac
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Requirement that borrowers execute
Form 3890, Multistate Second Home Rider, for all Mortgages secured
by second homes.
Freddie Mac views the failure to
completely and accurately identify and deliver Mortgages as a
breach of a Seller’s representations and
warranties.
For answers to questions about Freddie Mac’s
data delivery requirements and requirements with respect to the
purchase of Condominium Unit Mortgages, Sellers should call their
Freddie Mac representative or (800) FREDDIE.
To view the July 21st Industry Letter, please
click on the following link.
FHLMC July 21st Industry Letter
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