Fannie Mae, Freddie Mac update interested party contribution rules

Recent updates to secondary-market rules for interested party contributions and incentives mean lenders will have to pay more attention to how they use certain strategies that have become popular in the current market.

The updates, which generally are in effect now and become mandatory in early September, add additional precision in some cases and more leeway in others, according to a recent analysis by Troy Garris, an attorney at law firm Garris Horn. 

“The agencies use pretty broad language because they’re trying to capture all the circumstances that come up. I think here what people have been doing is reading that language more broadly and the agencies are just trying to rein it in,” Garris said, commenting on the  clarification in some of the rules.

Incentives and third-party…