Freddie Mac Bulletin 2026-6: Key Underwriting, Property Disclosure, and Condo Review Updates for Sellers

Freddie Mac’s Bulletin 2026-6, issued May 6, 2026, introduces a host of Selling Guide changes that every lender should review. From credit underwriting tweaks to stricter property disclosure rules and the formal incorporation of condo project standards, the bulletin impacts multiple areas of the origination process. Here’s what you need to know to keep your processes current.

Underwriting Changes That Shift Daily Operations

The bulletin refines several underwriting policies. Lenders must update their procedures to capture these changes, which affect income calculations, business structure evaluation, and verification workflows.

Hourly Income Starting After the Note Date Gets Tighter Scrutiny

The bulletin expands requirements for hourly wage earners who will begin receiving income after the Note Date. Lenders should review the updated Guide sections carefully to understand the specific documentation and verification steps now required.

• Consult the revised Guide for details on acceptable employment documentation and timing.
• Ensure your underwriting procedures align with the new expectations for verifying future income.

Farming Income: Clarity on Business Structure for Schedule F Filers

For self-employed borrowers reporting income on Schedule F (Profit or Loss From Farming), the bulletin provides updated guidance related to business structure. Lenders should consider how the farming operation is legally organized when analyzing income, as the analysis may differ based on entity type.

• Factor in the farming operation’s legal structure during income review.
• Apply the appropriate self-employment analysis guidelines for the entity type.

Using Reduced Real Estate Tax in Monthly Housing Expense

When a borrower qualifies for a tax abatement or exemption, the bulletin clarifies requirements for using a reduced real estate tax amount in the monthly housing expense. Lenders must document the abatement or exemption program in accordance with the updated guidance.

• Verify the abatement or exemption applies to the subject property.
• Retain proper documentation of the program’s terms and eligibility.

10-Day Pre-Closing Paystub Verification Simplified

Freddie Mac removes the requirement to show the “paid through” date on year-to-date paystubs used for 10-day pre-closing employment verification. This change streamlines the verification process and reduces last-minute friction.

• Year-to-date paystubs used for 10-day pre-closing verification no longer need to display a paid-through date.
• The update is effective immediately; adjust your checklists accordingly.

Property Disclosure Statement: The New Appraiser Delivery Requirement

A critical update for purchase transactions is the requirement to provide the property disclosure statement to the appraiser when the seller’s review identifies conditions that could adversely affect the subject property’s market value, condition, or marketability. Specifically, Freddie Mac calls out “adverse physical deficiencies consistent with a C5 or C6 condition rating.”

This change plugs a long-standing gap where sellers might disclose material defects to the buyer but not to the lender, potentially leading to an inaccurate appraisal. Lenders must now build an internal step that checks the seller’s disclosure for any C5/C6-level language and, if found, automatically forwards it to the appraiser. Transparent disclosure practices are also key to avoiding regulatory pitfalls; see our guide on UDAAP in mortgage lending for broader context.

• Review the property disclosure statement immediately upon receipt.
• Identify any descriptions of adverse physical deficiencies consistent with a C5 or C6 condition rating.
• If triggered, provide the entire disclosure statement to the appraiser before the appraisal report is completed.
• Document the review and any actions taken in the loan file.

Condominium Project Review and Insurance: Phased Implementation from Bulletin 2026-C

Bulletin 2026-6 formally incorporates the condominium project review and property insurance updates that Freddie Mac first introduced in Bulletin 2026-C (issued March 18, 2026). These changes come with multiple effective dates, so lenders need a tracking mechanism to ensure compliance over the coming months.

The core updates include revised eligibility standards for condo projects and changes to insurance requirements. Because the effective dates vary, some requirements may be immediate while others have later deadlines. Our step-by-step guide to building a mortgage compliance calendar can help you map out these staggered timelines.

• Review the complete requirements in Guide Sections 5602.3, 5602.4, and 5603.3 as updated.
• Note each change’s effective date and set internal reminders for compliance.
• Update your condo project review questionnaires and insurance tracking templates.
• Train underwriters and processors on the new eligibility thresholds.

Key Updates for Lender Compliance Management

With multiple revisions hitting the Guide at once, lenders face heightened risk of operational gaps. Automated regulatory tracking helps reduce manual effort and ensures no update is missed. Platforms like Reglith monitor Freddie Mac bulletins and map them directly to your internal policies, saving hours of research. For teams evaluating compliance automation, our pricing page outlines scalable options.

Beyond tracking, integrating these changes requires cross-functional collaboration between underwriting, processing, and quality control. The removal of the paid-through date, for instance, will affect QC checklists, while the disclosure-to-appraiser rule demands a new process step that may need to be hard-coded into your loan origination system.

Key Takeaways

• Income commencing after Note Date for hourly wage earners now has expanded documentation and verification requirements; refer to the updated Guide for specifics.
• Schedule F farming income guidance now addresses business structure, so lenders should consider how the entity type affects income analysis.
• Reduced real estate tax amounts can be used under clarified requirements, provided the abatement or exemption is properly documented.
• 10-day pre-closing paystubs no longer need a “paid through” date, simplifying the verification process.
• Property disclosure statements must be forwarded to the appraiser when they indicate deficiencies consistent with a C5 or C6 condition rating.
• Condo project and insurance updates from Bulletin 2026-C are now integrated with staggered effective dates, requiring careful compliance tracking.