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Important Information About October 17 Single-Family Seller/Servicer Guide Bulletin Requirements for Sale of Primary ResidenceDecember 22, 2008

As a reminder, in our October 17 Single-Family Seller/Servicer Guide (Guide) Bulletin, we announced new Freddie Mac purchase requirements for mortgages where the sale of the borrower's current primary residence has not yet closed and will not close before the mortgage note date of the subject property. For these mortgages, the calculation of the monthly debt-payment-to-income ratio must include both:

  • The amount of the housing payment on the borrower's current residence.
  • The amount of the payment on the subject mortgage.

To ensure Loan Prospector® is assessing your loans accurately based on these new requirements, when the primary residence is included in the debt calculation when applicable:

  • You should enter the borrower's current primary residence as "Retained" in Loan Prospector.
  • Loan Prospector will then include the monthly housing payment of the pending property sale in the total monthly debt-to-income ratio.

Note: If you select "Pending Sale" in Loan Prospector for the current primary residence the housing payment will be excluded from the total monthly debt-payment-to-income ratio.

For more information on this new requirement, please refer to the October 17 Guide Bulletin.

© 2010 Freddie Mac

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