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Announcement 2018-50 Conventional and Government Updates

Announcement 2018-50
Date: August 20, 2018
Conventional and Government Updates
All Channels

FHLMC Multiple Financed Properties Update
Effective August 20, 2018, FHLMC will now allow up to ten (10) maximum financed properties that a borrower may be obligated on when the subject property is a second home or an investment property.

When the number of properties is greater than six (6), the following is required:

-  LPA scored with a Risk Classification of Accept

-  A minimum credit score of 720 is required

-  Eight months of reserves are required for each additional second home and/or 1- to 4-unit investment property that is financed

-  Verbal Verification of Employment (VVOE) Update

Effective immediately, the following updates have been made to conventional and government product profiles:

-  The following language has been removed as probability of continued employment is determined by the written verification and the borrower’s employment history.

-  As part of the verification, the employer must be asked about borrower’s probability of continued employment.

-  If an employer refuses to answer the question, this must be documented on the VVOE.

Clarification has been made that the VVOE for a salaried individual is based on days prior to the note date (previously stated closing).


Please refer to the New Penn Financial National Correspondent Division Product Matrices for specific product details.