Using HVE Point Value Estimates for Relief Refinance Mortgages
When originating Freddie Mac Relief Refinance MortgagesSM, you may determine the property value using a point value estimate obtained from Home Value Explorer® (HVE®), Freddie Mac’s automated valuation model. HVE provides extensive coverage of all 50 states and more than 3,100 counties with its database of approximately 81 million property records. HVE data simplifies the mortgage process by streamlining the collateral valuation cycle.
HVE results may be used for Relief Refinance Mortgages secured by eligible 1- to 2-unit properties and are available through the following options:
- The HVE look-up tool for Relief Refinance Mortgages – Same Servicer.
- Loan Prospector® on the Loan Prospector Feedback Certificate for Relief Refinance Mortgages – Open Access.
- Home Value Suite distributors for Relief Refinance Mortgages – Same Servicer and Relief Refinance Mortgages – Open Access.
Using the HVE Look-Up Tool for Relief Refinance Mortgages – Same Servicer
Take advantage of the HVE look-up tool to obtain point value estimates that can help you originate Relief Refinance Mortgages – Same Servicer quickly and easily.
- You can conveniently access the look-up tool from LoanProspector.com using your current Loan Prospector ID and password.
- Third-party originators (TPOs) may also access the HVE look-up tool under the terms and conditions outlined in Exhibit 32 of the Single-Family Seller/Servicer Guide (Guide). As stated in Exhibit 32, Freddie Mac Seller/Servicers may make HVE data accessible to their contractually-affiliated TPOs, but only through a password-protected interface on the Seller/Servicer’s website.
- To obtain the HVE data through the HVE look-up tool, you must submit a valid 9-digit Freddie Mac loan number. The HVE look-up tool will return the following information:
- Freddie Mac loan number
- HVE Point Value
- HVE Forecast Standard Deviation
- Date that you accessed the point value estimate data using the look-up tool
- Freddie Mac servicer number
- Property address
- You can obtain the HVE point value estimate for a single loan or for multiple loans up to 500 loans. For single loan requests, the HVE look-up tool provides HVE point value estimates immediately. Requests for multiple loans or batch requests require overnight processing. For batch requests, you must submit the loan numbers using an XML file format. You will receive an email when your batch request is processed and ready to download.
Loan Prospector Feedback Certificate Provides HVE Data for Relief Refinance Mortgages – Open Access
Relief Refinance Mortgages – Open Access must be fully underwritten and submitted to Loan Prospector. The HVE data is provided as part of the loan assessment that is returned when a loan is submitted to Loan Prospector. The HVE point value estimate will be found on the Loan Prospector Feedback Certificate. The following are tips to guide you in the use of the HVE point value estimate returned by Loan Prospector:
- Sellers must review the HVE point value estimate returned by a Loan Prospector assessment to determine whether it meets the requirements of the Relief Refinance Mortgage offering.
- If you are using the HVE point value estimate on the Loan Prospector Feedback Certificate to determine the property value,you must still resubmit this value to Loan Prospector. As required today for any Loan Prospector submission, the property value obtained from any methodology used to determine property value (or used in the origination of the loan) must be inputted to Loan Prospector.
- If after resubmission of the HVE point value estimate, the Loan Prospector Feedback Certificate provides a different HVE value, Freddie Mac does not prescribe which HVE point value estimate to use as long as the HVE value delivered for a Relief Refinance Mortgage – Open Access meets all applicable requirements outlined in Guide Chapter B24.
Obtain HVE Data from an HVE Distributor for Relief Refinance Mortgages – Same Servicer or Relief Refinance Mortgages – Open Access
You may use the HVE data obtained from a Home Value Suite distributor provided that the HVE point value estimate meets the applicable requirements of the Relief Refinance Mortgage offering.
Important Reminders About Using HVE Point Value Estimates for Relief Refinance Mortgages
- When using HVE point value estimates, you are relieved of representations and warranties for the value, condition, and marketability of the mortgaged premises as long as the Relief Refinance Mortgage requirements in Guide Chapters A24, B24, and C24 are met, including:
- The Forecast Standard Deviation for the HVE point value estimate must not be greater than 0.20 (corresponding to a medium or high confidence score). You must also review the property type and other Relief Refinance Mortgage requirements to ensure that the property is eligible for a Relief Refinance Mortgage transaction.
- The HVE point value estimate may not be more than 120 days old as of the note date.
- There are special delivery requirements associated with Relief Refinance Mortgages that use an HVE point value estimate. See Guide Sections A24.4, B24.4 and C24.4 for more information.
- As of the Freddie Mac settlement date, you must not be aware of any circumstances or conditions that would adversely affect the value, condition, or marketability of the mortgaged premises. If you are aware of any adverse conditions, you cannot use HVE to determine the property value and must obtain a new appraisal.
- You must include in the mortgage loan file either a screen print of the point value estimate generated by the HVE look-up tool, a copy of the Loan Prospector Feedback Certificate, or the HVE report received from a distributor. If the HVE data for several mortgages is in a single report (obtained with a batch request from the HVE look-up tool), a copy must be made of the applicable HVE point value estimate, Forecast Standard Deviation, confidence score, and date of the estimate for each mortgage, and retained in the appropriate mortgage file.
- Receipt of an HVE point value estimate does not indicate that a loan is eligible for the Relief Refinance Mortgage offering, or that the HVE point value estimate may automatically be used for property valuation. The loan and the HVE point value estimate must meet the requirements, as applicable, of Guide Chapters A24, B24, and C24.
- When the requirements for using the HVE point value estimate are not met or an HVE point value estimate cannot be obtained, you must determine the value by obtaining a new appraisal that meets the requirements of your Purchase Documents for a Relief Refinance Mortgage.
Get More Information
- Review our Learning Center resource, Using HVE via LoanProspector.com for Relief Refinance Mortgages, for detailed information and user tips.
- For complete requirements for our Relief Refinance Mortgages offering, refer to:
- Guide Chapter A24, Freddie Mac Relief Refinance Mortgages – Same Servicer with LTV ratios greater than 80 percent.
- Chapter C24, Freddie Mac Relief Refinance Mortgages – Same Servicer with LTV ratios less than or equal to 80 percent.
- Chapter B24, Freddie Mac Relief Refinance Mortgages - Open Access.
- Learn more about Relief Refinance Mortgages.
- Take advantage of our Relief Refinance Mortgage resources on the Learning Center.
- Find detailed information about HVE on our Home Value Explorer Webpage.
- If you’re not a Loan Prospector user, get more information about signing up for Loan Prospector.