Date: August 20, 2018
Conventional and Government Updates
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.