Conventional and Government Updates - 8/20/18

FHLMC Multiple Financed Properties and Verbal Verification of Employment (VVOE) 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 full product profiles for specific details.