Announcement 2021-002 - Agency Underwriting Guideline Updates

Agency Underwriting Guideline Updates

Effective immediately, NewRez is aligning with Freddie Mac Bulletin 2020-43 and Freddie Mac 2020-45 and Fannie Mae SEL 2020-07 on the following topics:

 

Freddie Mac Bulletin 2020-43

 

Condominium and Co-op Projects

 

  • Updates to Condominium Hotels and similar types of transient housing
  • Updates to the Glossary definition of 2- to 4-Unit Condominium Project
  • Requirement updates for Exempt from Review
  • Updates to the Glossary definition of Master Association
  • Clarification relating to retention of project-related documents
  • Updates to minimum number of cooperative units
  • Cooperative corporation master insurance deductibles

 

Bulletin 2020-45

 

Solar Panels

 

Clarified requirements for properties with solar panels when the solar panels are leased, financed, or owned.

 

These changes align with the previously announced Fannie Mae Selling Guide announcement and are located in Chapter 1D Property Types for complete requirements.

 

 

Power of Attorney

 

Freddie Mac now requires the use of a power of attorney to be used under the following circumstances:

 

  • There is an emergency event (e.g., medical emergency, natural disaster, etc.) preventing the borrower from executing the requisite documents in person, by electronic signature or through other alternative electronic means; or
  • Applicable law requires the use of a POA.

 

See Chapter 9A Power of Attorney for complete details

 

Fannie Mae SEL-2020-07

 

  • Retirement, government annuity, and pension income and employment-related assets as income
  • Sale of personal assets: updated documentation requirements
  • Clarified the treatment of pro-rated tax credits

 

See the following chapters in the Underwriting Guide for complete requirements:

 

  • Retirement, government annuity, and pension and employment-related assets as income: Chapter 1E Employment and Income
  • Sale of personal assets: Chapters 1B Transactions and 1G Assets