November 2006 Selling System Enhancements

With our November 20 selling system enhancements, we're expanding opportunity where you need it with new system capabilities and timesaving resources. Our changes include:

Adding system capabilities to allow you to sell Mortgages for Newly Constructed Homes under our new offering
Providing an additional way to access Freddie Mac's Exclusionary List
Extending our WAC ARM Cash contract execution availability hours of operation

New System Capabilities for Mortgages for Newly Constructed Homes

When it comes to new construction borrowers, look to Freddie Mac first to expand opportunity where you need it with the selling system. Deliver a greater variety of mortgages, including new 40-year fixed-rate mortgage. Whether you sell servicing-released and servicing-retained cash, fixed-rate Guarantor, WAC ARM Guarantor and MultiLender Swap sale options, you have expanded options for a competitive sale.

While it's important that you review our full requirements before beginning to implement Mortgages for Newly Constructed Homes into your operations, here are several important items to keep in mind when selling these mortgages through the selling system:

New Special Characteristic Codes Required
With our enhanced and expanded Mortgages for Newly Constructed Homes offering, you are required to provide new special characteristics codes (SCCs) and, when applicable, a new reference code value on Form 11 or 13SF.

SCC D49 = Newly Built Home Mortgages – Site-Built
SCC D50 = Newly Built Home Mortgages – Manufactured Home
SCC D51 = Construction Conversion Mortgage – Site-Built
SCC D51 and D69 = Renovation Mortgage – Site-Built (both SCCs must be delivered)
SCC D52 = Construction Conversion Mortgages – Manufactured Home
SCC D53 = Seasoned Mortgage for Newly Constructed Home [Please note: further direction on the new definition of seasoning and the use of this SCC is included in the November Guide Bulletin.]

Reference Code (delivered with Construction Conversion/Renovation Mortgages when data must be entered into the mod/conv field)
0013 –- Mortgages for Newly Constructed Homes

Sell Seasoned Mortgages for Newly Constructed Homes. With our recent enhancements, we provided a new seasoning definition for Mortgages for Newly Constructed Homes. A mortgage is a seasoned mortgage for a Newly Constructed Home if the settlement date occurs more than 18 months after the oldest date of a borrower's credit, capacity or collateral documentation.

Identifying seasoned mortgages for newly constructed homes. When you sell your seasoned Mortgages for Newly Constructed Homes through the selling system, you must provide SCC D53 to let us know you are selling a loan that meets the new seasoning definition. You must always inform Freddie Mac that the mortgage is seasoned.
Delivery fee assessment for seasoned loans. When you sell Mortgages for Newly Constructed Homes identified by SCC D53, you will now be assessed a special postsettlement delivery fee identified on the revised Exhibit 19 attached to the November Guide Bulletin.

Sell Initial Interest^SM Mortgages as Newly Built Home Mortgages. You are now able to sell Initial Interest Mortgages under this offering as Newly Built Home Mortgages – Site – Built, using Reference Code 0012.
Selling Home Possible® Mortgages as Newly Built Home Mortgages. Take advantage of the opportunity to sell Freddie Mac's Home Possible Mortgages under the Newly Built Home Mortgages – Site-Built option for this offering.
Choosing the MultiLender Swap Sale Execution. Mortgages for Newly Constructed Homes may not be allocated to MultiLender Swap contracts if the Effective Date of Permanent Financing is more than 12 months prior to the Settlement Date.

Important Reminder: You'll find new glossary terms and all underwriting, delivery, and execution requirements associated with our new Mortgages for Newly Constructed Homes offering in the November 20 Freddie Mac Single-Family Seller/Servicer Guide Bulletin. It is important that you review our full requirements before planning to implement this offering into your systems and operations.

Other November 20 Selling System Enhancements

Access to Freddie Mac's Exclusionary List Through the Selling System. You can now conveniently reference Freddie Mac's Exclusionary List through the selling system to verify names of individuals and companies that have been excluded from participating in transactions or doing business, directly or indirectly, with Freddie Mac. All current selling system users with the Secondary Marketing Officer (SMO) role automatically have access to the Exclusionary List as of Monday, November 20.

To request a new user role to gain access to the list through the selling system, simply contact your selling system representative or call (800) FREDDIE. For more information about Freddie Mac's Exclusionary List and related Seller/Servicer representations and warranties, please refer to the Freddie Mac Single-Family Seller/ServicerGuide, including, but not limited to, Guide Section 6.11.
Extended WAC ARM Cash Contract Execution Availability Hours of Operation. With our recent changes we updated the selling system WAC ARM Cash contract execution availability hours of operation so you have more time to take out a contract during the business day. The new hours of operation are 9:00 a.m. – 5:00 p.m. ET, Monday through Friday.

November Selling System Enhancements Training

Sign-up for a selling system enhancements web conference today. We've put more details about all of our selling system enhancements in our new web conferences, available for you and your staff from the convenience of your office.