On October 7, Freddie Mac issued a bulletin announcing selling updates to its Single-Family Seller/Servicer Guide, including retiring its standalone “GreenCHOICE Mortgages” offering for energy-efficiency renovations and expanding its “CHOICEReno eXPress Mortgages” product for small-scale renovations. Energy-efficiency renovation loans with application received dates on or after January 25, 2027, will be eligible through Freddie Mac’s other renovation offerings, and loans in the retired program must settle by February 28, 2027. For loans with Loan Product Advisor submission or resubmission dates on or after January 25, 2027, the expanded product will drop the energy report for certain mortgages, cap financed renovation costs at 15 percent nationwide, and open eligibility to all property types and manually underwritten loans, while also allowing proceeds to pay off short-term financing and Property Assessed Clean Energy obligations.

For settlement dates on or after November 9, Freddie Mac will also allow seller-owned modified mortgages to have terms changed to reduce the monthly payment through a principal curtailment and recast, in addition to an interest rate reduction. Sellers will not have to manually re-underwrite borrowers or order a new appraisal when such a mortgage settles within six months of the original note date, though a seller must warrant the property’s current value if settlement occurs more than 120 days after that date. Freddie Mac will also make more loan types eligible as seller-owned modified mortgages, including investment property, second home, manufactured home, and super conforming mortgages. Investment property refinances can now qualify for automated collateral evaluation, subject to maximum loan-to-value ratios of 75 percent for “no cash-out” refinances and 60 percent for cash-out refinances. Among other updates, the bulletin: (i) makes multiwide manufactured homes eligible for certain shared equity program mortgages; (ii) drops the advance written approval requirement for loans on manufactured homes on leased land; and (iii) effective December 6, specifies master flood insurance requirements for condominium projects in which commercial space exceeds 25 percent.