08/16/2024
Effective for note dates on and after September 5, 2024, Freddie Mac is updating the Selling Guide to require that if a flood insurance policy on the mortgaged premises shows a full risk premium and a discounted premium, the full risk premium, plus any fees and surcharges, must be:
- Used to calculate the housing expense-to-income (HTI) and debt payment-to-income ratios (DTI),
and - Qualify the Borrower for the transaction.
Pennymac is aligning with this change.
Please refer to Freddie Mac Bulletin 2024-7 and Freddie Mac Selling Guide sections 5401.1 and 5401.2 for additional information and complete requirements.
Please contact your Sales Representative with any questions.