Oh My Gawsh! These changes were made effective June 1, and Freddie still hasn’t updated LP!
What concerns me the most goes something like this: the loan officer takes a loan application and passes it on to the Processor who receives an LP approval. Assuming everything is fine and dandy, the LO moves on to the next deal as the ineligible loan is processed. The day before closing, the transaction is rejected and must be entirely restructured, if possible. Or worse, the loan is closed – and unsalable.
However, Freddie wouldn’t have “reminded” everyone if there wasn’t a problem.
(Freddie Mac August Single-Family News; August 2008 Issue)
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