Freddie Pricing Pipeline Coverage

On May 23, Freddie bulletin on pricing pipeline coverage for fee caps.

  • Freddie issued Bulletin 2024-D on pricing pipeline coverage for credit fee caps.
  • Per Bulletin 2024-C, area median income limits in most areas increased, #211569.
  • However, recognized that in many areas the area median income (AMI) decreased.
  • Provided pricing pipeline coverage for credit fee caps for mortgages originated under 1st-time homebuyer and/or duty to serve credit fees in areas where AMI decreased.
  • Pricing Pipeline Coverage
  • To qualify for coverage mortgage must have been submitted to Loan Product Advisor on/before May 19, 2024, be an Accept Mortgage; originated using 2023 AMI limits.
  • Must be eligible for first-time homebuyer and/or duty to serve credit fee cap.
  • Qualifying income no longer meets AMI % requirement for the first time homebuyer and/or duty to serve credit fee cap, based on 2024 AMI limits, per Bulletin 2024-C.
  • Note date must be on/after May 19, 2024, last Loan Product Advisor submission date must be on or after May 19, 2024, and pricing benefit must be provided to borrower.
  • Additionally, provided seller delivery requirements for pricing pipeline coverage.
  • Effectiveness
  • Provisions effective for mortgages with settlement dates on or before Jul. 31, 2024.

Regulators Freddie
Entity Types Bank; CU; MG Orig; Servicer; Thrift
Reference Bul 2024-D, 5/23/2024
Functions Compliance; Financial; Legal; Operations; Underwriting
Countries United States of America
Products Banking; Loan; Mortgage
Regions Am
Rule Type Final
Rule Date 5/23/2024
Effective Date 7/31/2024
Rule Id 213352
Linked to Rule :211569
Reg. Last Update 5/23/2024
Report Section US Banking

Last substantive update on 05/28/2024