Freddie Mac Expands Use of Attorney Opinion Letters

On May 1, Freddie Mac issued a selling bulletin update that announced an expansion in the permitted use of attorney opinion letters. Freddie Mac’s update stated the following:

We have updated our requirements for attorney opinion of title letters. As part of our mission to promote sustainable access to homeownership and reduce cost barriers for Borrowers, we have expanded the types of Mortgages that are eligible for delivery with an attorney opinion of title letter, including:

• Mortgages secured by a unit in a Condominium Project,
• Mortgages secured by a property subject to restrictive agreements or restrictive covenants, and
• Mortgages secured by a property located in all U.S. jurisdictions, unless prohibited by law or identified as an ineligible transaction type in Section 4702.3.

This Guide update also includes additional specificity for both the attorney opinion of title letter and attorney requirements. A link to the acceptable use of attorney title opinion letters effective 5/1 can be found at: https://guide.freddiemac.com/app/guide/section/4702.3.