On June 5, 2004, both Fannie Mae (Selling Guide Announcement SEL-2024-04, click here) and Freddie Mac (Bulletin 2024-7, click here) issued updates to their selling guides regarding builder forward commitments. Builder forward commitments are agreements between lenders and builders in which the builder pays the lender a fee for the lender to offer future buyers a specific interest rate for a given time period. Both Fannie and Freddie have clarified that the costs associated with obtaining the commitments are not considered interested party contributions and thus not subject to their interested party contribution limits.
Full Memorandum
