Freddie Mac has issued their guidance about purchasing higher priced mortgages starting October 1st. Their guidance may have answered our questions about how to originate 5 year balloons and ARMS. For it appears they will not purchase these loans. This new wrinkle makes it even more important to test your loans early and often. If the loan is not a higher priced mortgage it is still good to go but if it exceeds the thresholds it has even more restrictions now.
(Bulletin 2009-17; http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0917.pdf)
