Freddie Mac recently issued Bulletin 2020-19 to address the ongoing economic implications and uncertainty related to the COVID-19 pandemic and impacts on borrowers, sellers, and the mortgage origination process.
The Bulletin provides (i) temporary requirements and guidance for underwriting borrowers with qualifying self-employment income, (ii) temporary flexibilities for CHOICERenovation Mortgages, (iii) delivery requirements for “no cash-out” refinance mortgages, and (iv) temporary eligibility requirements related to the purchase of delinquent Mortgages in forbearance. Sellers are also referred to FAQs related to COVID-19 that should be consulted for continuing updates.