Welcome to the Q2 2025 Mortgage Chat – CrossCheck’s mortgage-focused quarterly publication which addresses topics that arise as lenders originate, underwrite, and fund their residential mortgage products. These insights are intended to help clarify investor requirements regarding underwriting and quality assurance as well as provide best practices. Click the green button below to download.
In this issue, we address the following topics:
- Freddie Mac Key Selling Updates – Freddie Mac’s February 5, 2025 Guide Bulletin announced key selling updates including expanded eligibility for hybrid appraisals, increased use of automated collateral evaluation (ACE) and ACE+PDR, updated property eligibility requirements for properties with detrimental conditions, revised rental income guidelines, and expanded use of positive rent payment history in credit assessments.
- Fannie Mae DU Version 12.0 – Released on January 11, 2025, Fannie Mae’s DU Version 12.0 update introduces major changes to risk assessment criteria, including revised evaluations of credit factors, income considerations, and property assessments. These modifications aim to expand mortgage accessibility for a wider range of borrowers while maintaining robust safety standards, potentially resulting in more approvals for loans that might have been previously ineligible or referred with caution.
- Upcoming Fannie Mae Updates to Condo Project Manager – Fannie Mae’s Desktop Underwriter update, effective June 23, 2025, will integrate Condo Project Manager (CPM) data into the DU report’s Property and Appraisal section, providing lenders with easier access to condo project statuses and restrictions, including various approval messages and requirements based on CPM matching and certification status.
- Fannie Mae – Updates to Condo Project Manager – Fannie Mae’s Desktop Underwriter update, effective June 23, 2025, will integrate Condo Project Manager (CPM) data into the DU report’s Property and Appraisal section, providing lenders with easier access to condo project statuses and restrictions, including various approval messages and requirements based on CPM matching and certification status.
- Post-Disaster Appraisal Guidance – Fannie Mae and Freddie Mac have policies for post-disaster property assessments, with Fannie Mae allowing appraisal waivers under certain conditions and Freddie Mac potentially suspending appraisal waivers in disaster areas, emphasizing lender responsibility in assessing property condition and ensuring necessary repairs.
If you are a lender grappling with a mortgage question, we invite you to send your query to Ask CrossCheck. Our team of mortgage experts are ready to provide the guidance and support you need.
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