2007 Area Median Income Changes to be Updated in Loan Prospector on June 26
The U.S. Department of Housing and Urban Development (HUD) has provided its 2007 area median income (AMI) estimates. Because of a change in the way the estimates are calculated, many of the 2007 incomes are lower than the 2006 incomes. On June 26, Freddie Mac will update Loan Prospector to reflect the 2007 area median incomes.
What This Change Means for You
The 2006 AMI limits will apply to all mortgages submitted to Loan Prospector prior to June 26, 2007.
All mortgages submitted to Loan Prospector on and after June 26, 2007 will be assessed using the 2007 AMI limits.
Freddie Mac Sellers may disregard the feedback messages noted below, for Home Possible Mortgages originally submitted to Loan Prospector before June 26, 2007 that meet the 2006 AMI limits and are resubmitted to Loan Prospector on and after June 26, 2007, if both of the following conditions are met:
The only reason for the ineligibility is the change in area median income from 2006 to 2007.
The mortgage is delivered to Freddie Mac by August 31, 2007.
If these conditions are met, Sellers may ignore the following Loan Prospector ineligibility messages for area median income limits:
Mortgage Product
Code
Feedback Message
Home Possible
PUR 48
Borr(s) income does not meet Hm Poss income limits.
Home Possible Neighborhood Solutions
PUR 49
Borr(s) income does not meet Hm Poss NH Sol income limits.
Brokers and third-party originators, be sure to check with your wholesaler to determine how they plan to address these requirements.
Effective September 1, 2007, all mortgages with area median income limit requirements delivered to Freddie Mac must adhere to the 2007 AMI limits.
Affordable Income & Property Eligibility Tool Available on FreddieMac.com
For more information on the 2007 AMI limits, Sellers and third-party originators should use the Affordable Income & Property Eligibility tool. The data will be updated to reflect the 2007 AMI amounts by the end of the day on June 18.
Even with these changes, our Home Possible Mortgages continue to provide you with a wealth of new possibilities, including:
Ways to expand your reach in rapidly growing markets for first-time homebuyers, minorities, new immigrants, and low-to-moderate income borrowers.
Offer no money down with Home Possible 100 and property seller contributions, and lower initial monthly payments with temporary subsidy buydowns.
Additional flexibility for individual borrower needs with reduced mortgage insurance to 20%, ARM options, no reserves, and closing cost funding options.
A streamlined process at the point-of-sale with easy Loan Prospector assessments.
