Freddie Mac recently released updates and requirements significant to appraisers by way of its Single-Family Guide Bulletin, noting all of the changes were effective immediately unless otherwise noted.

To promote consistency and transparency in appraisal reports, Freddie Mac, in collaboration with Fannie Mae, is updating requirements related to the market area analysis of the appraisal report and implementing standardized definitions for the terms “neighborhood” and “market area.”

The guide is being updated to include these new definitions in the glossary.

As to appraisal market area analysis, this is effective for mortgages with application received dates on or after Feb. 4, 2025, but sellers are encouraged to implement immediately.

Additional guidance and requirements are included for the following:

• Selection of comparable sales,
• Establish a minimum time frame (12 months) from which the overall market trend must be derived,
• Identify that the overall market trend may be different from the adjustments applied to individual comparable sales,
• Include an illustration of the methodology used to determine specific comparable sale time adjustments for changes in market conditions, and
• Include a new requirement that the appraiser must report the market analysis that supports both the indicated overall market trend and market derived time adjustments for changes in market conditions.

The guide impacts Sections 3402.5, 4201.18, 4406.6, 4502.8, 4504.9, 5601.1, 5601.2, 5601.5, 5602.1, 5602.3, 5603.1, 5603.3, 5603.4, 5604.2, 5605.1 through 5605.7, 5605.9, 5701.8, 5703.3, 5705.8, Exhibit 44 (new) and the glossary.

“We are establishing requirements for Green MBS issued through the Guarantor program,” Freddie Mac announced. “In accordance with these requirements, sellers will be able to form Green MBS, which must be composed entirely of Green MBS-eligible collateral. Green MBS will be considered Green MBS issued pursuant to our Green MBS framework. To qualify for Green MBS, all Mortgages must be identified with ULDD Data Point Investor Feature Identifier (Sort ID 368) valid value ‘J99’ and must be delivered under a green contract. The effective for mortgages with settlement dates on or after Jan. 1, 2025”

For this area, the guide impacts Sections 6202.3, 6302.3, Exhibit 34 and Glossary.

Additionally, Freddie Mac (and Fannie Mae) have updated Exhibit 5A, authorized changes to notes, riders, security instruments and the uniform residential loan application, to revise the limited purpose execution authorized changes language for use in all security instruments and to remove the limited purpose execution authorized changes language for the Illinois Mortgage and Wisconsin Mortgage Security Instruments.

In this section, the Guide impact Exhibit 5A.

Also, the GSEs pointed out that chapters 4606, 5603 and 5606 have been refactored to enhance readability and improve the usability of the Guide. No requirements were changed as a result of this new formatting, although cross-references to the refactored Chapter 4606 have been updated.

This section has the Guide impacting Sections 3401.30, 4203.1, 4301.4, 4301.5, 4606.1 through 4606.6, 4607.16, 5603.1 through 5603.6, 5605.8, 5606.1 through 5606.3, 6302.16, 6302.23, 7101.4 and 8104.6.

For a detailed list of the guide updates associated with this bulletin and the topics with which they correspond, access the bulletin 2024-15 (Selling) Guide updates spreadsheet via the download drop-down available at https://guide.freddiemac.com/app/guide/bulletin/2024-15.