Freddie Mac faces lawsuit for exclusionary list release. Home Loan Mortgage Corporation says it 'stands by its action' in naming a California mortgage banking firm to its 'exclusionary list' even though the firm. Freddie Mac's action in publishing the exclusionary list was praised as a 'bold first step in the sharing of private. Freddie Mac Exclusionary List News Monitoring. The past attendees list for Close Air Support 2019 has recently been released and is available to download on the. Use the following list of reminders as a tool when underwriting the appraisal report. For complete information on appraisal requirements, refer to the Freddie Mac Seller/Servicer Guide. Does not appear on the Freddie Mac Exclusionary List.
Posted byHomeowner2 years ago
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A new and interesting way to kill a deal: seller was on the Freddie Mac exclusionary list and did not disclose to anyone (MI)
Hi all, new to the subreddit, buying my second home and just kind of got obsessed with real estate during the process of searching. I thought you all might find my story interesting since neither my agent nor my LO had ever heard of the Freddie Mac exclusionary list, and we had to get an RE attorney involved to straighten everything out.
Situation is, husband and I had been under contract on our house since early December, having 45 days after closing to turn over possession, closed on 1/18/17. All through Nov and Dec nothing that fits our budget comes on the market, which for us is very narrow--two towns that feed one school district, where most neighborhoods cost $400k plus, under $300k, at least 3ba1.5ba, with some updates.
To make a very long story short, we were desperate, and this house had a lot of pluses that made it seem worth whatever hoops we had to jump through to make it work. It took all of January, but we eventually got to the point where we thought all we were waiting for was the clear to close.
Until last Wednesday, when my LO calls me, sounding more freaked out than I've ever heard him. He tells me that he's heard back from underwriting and we are all good, but the seller is not. He's on the Freddie Mac exclusionary list, and our lender will not authorize the loan if the seller is on this list, period. LO has no idea what this list is--neither he nor his manager has ever seen this before. He recommends I call my agent right away.
Agent and I speak and she tells me that seller's agent has been blindsided as well. Seller says that it's probably no big deal, he had no idea he was on the list, he had a small employment dispute in a company he was involved in 20 years ago, and this just must be a misunderstanding.
I did a little research, and it seems that the Freddie Mac exclusionary list is pretty obscure. It's essentially a Freddie Mac blacklist, shared with the other federal entities responsible for mortgages, designed to register people who have played fast and loose with the loan origination process. People on the list cannot sell houses to anyone using mortgages, because, as our real estate attorney told us, the theory is that federally-backed funds should not be used to enrich anyone who has done something to merit inclusion on the list. Once you land on the list, you are mailed a letter saying as much, and you are on the list for a period of two years. Download torrent ?? ?? 2013. After two years, you can apply for removal, and you are either approved or denied. Every year thereafter, you can petition for removal, and you are always notified of the decision by letter.
What did our seller do to land his ass on the list? Why, he took out a bunch of HARP loans and then defaulted on them. Is it possible that he truly did not know he was on the list? Remotely possible, but extremely unlikely given the volume of notification he would have received and the fact that he would not have been able to sell a house to anyone other than a cash buyer for the entire time he had been on the list. How did we not find out until the end of the underwriting process? The seller (purposefully?) concealed his name by using the name of his LLC on several docs instead, so that one of our conditional approval requirements became identification of the responsible party of the LLC, at which point he was red-flagged.
Edited to add: no, he could not get himself off the list in any reasonable amount of time. He also suggested quit-claiming the house to his LLC partner to get around the list--except that people on the list have a 6-month waiting period after quit-claim to sell for that express reason!
The seller's proposed solution was a portfolio loan 5-year ARM at 4.625 (we had qualified for 4.25), planning to refinance at the 6-month waiting period to a traditional 30-year. We said thanks but no thanks--we're still not sure why a crazy-sounding mortgage would work if a traditional one wouldn't.
Freddie Mac Exclusionary List Search
We were incredibly lucky in that we were able to come up with cash to make an offer $14k less than our original mortgage offer to get the deal done. We ended up at $272.5K because the seller OWES $270k on the house! The plan is to cash-out refi after 6 months to reimburse our cash investor, and we may be able to make some money on the deal given the updates we have planned in those months.
So that's the Freddie Mac exclusionary list! Now you can tell your clients to run far, far away if it ever comes up.
Loan Prospector Freddie Mac
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