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SBL: Tracking Loan Production and Underwriting with Business Days

April 18, 2016

For Small Balance Loans (SBLs), we now use business days – not calendar days – to track SBL application dates, rate holds and key underwriting deadlines.

Because of this change, SBL Sellers should use the signed application date – not the application date plus three business days – when entering the "Under Seller Application Date" into the PMT (our Web Pipeline Management Tool for SBL).

In conjunction with this change, the pricing hold is changed from 45 calendar days to 35 business days.

We are making these changes to eliminate confusion around:

  • Situations where the signed application date and date entered into the pipeline crosses a new pricing grid (e.g., an application is signed on Monday, the date posted is Thursday, and the pricing grid changed on Tuesday).
  • What to do if day 45 is a Saturday or a Sunday.

Time calculations for underwriting now also use business days. The new benchmark turn time for underwriting will move from 12 calendar days to 9 business days measured from package receipt to issuance of the draft Commitment.

The holidays excluded from the business day count will follow Freddie Mac’s holiday schedule:

  • New Year's Day
  • Birthday of Martin Luther King, Jr.
  • Presidents Day
  • Memorial Day
  • Independence Day
  • Labor Day
  • Thanksgiving Day
  • Christmas Day

If you have any questions, please contact your Freddie Mac Representative.

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