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Freddie Mac Updates Alter DTI Calculations, Multi Property Requirements

Thursday, July 16, 2015

A number of selling updates to Freddie Mac's Single-Family Seller/Servicer Guide are slated to go into effect over the next several months.  The largest number of updates concern credit and underwriting

The first of these changes effect the calculation of debt payment-to-income ratios (DTI) where a borrower is obligated by student loans.  Effective for mortgages with settlement dates on or after August 1 the minimum payment that must be used in lieu of a verified monthly payment, i.e. when a loan is in forbearance or deferred, will drop to 1 percent from 2 percent of the outstanding loan balance.  This could change the required imputed minimum payment on a 2014 graduate's average student loan balance of $33,000 from $660 a month to $330.

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