August 2007 Selling System Enhancements
Special Delivery Requirements Related to Freddie Mac Delivery Fee Rate Modifications
In our August 1 Freddie Mac Single-Family Seller/Servicer Guide (Guide) Bulletin [PDF 90K]
we revised delivery fee rates for certain Home Possible® Mortgages and mortgages with 80/10/10 secondary financing structures and Home Possible Mortgages with secondary financing.
Please note that the Home Possible Mortgage delivery fee rate increase will not apply to:
- Purchase transaction Home Possible Mortgages when the income used to qualify the borrower, converted to an annual basis, does not exceed 80 percent of the applicable area median income (AMI).
- Home Possible Mortgages secured by properties located in eligible disaster areas affected by Hurricanes Katrina and Rita originated on or before December 31, 2007 and delivered to Freddie Mac on or before March 31, 2008. Freddie Mac removed the median income limits for these mortgages in our Guide Bulletin dated June 26, 2006 [PDF 367K].
Therefore, many Home Possible Mortgages will not be impacted by this change, enabling you to continue serving low- and moderate-income borrowers with Home Possible Mortgages.
In addition, our secondary financing delivery fee rate increase will not apply to the following:
- Mortgages with an 80/10/10 secondary financing structure that have an Indicator Score equal to or greater than 700.
- Home Possible Mortgages with secondary financing that have an Indicator Score equal to or greater than 700.
You can find complete details on all our delivery fee modifications in our August 1 Guide Bulletin [PDF 90K].
Special Delivery Requirements for Home Possible Mortgages
- As of November 1, you must deliver a new special characteristics code (SCC) 140, for all purchase transaction Home Possible Mortgages where the borrower’s income is at or below 80% of AMI and for purchase transaction Home Possible Mortgages secured by properties located in eligible disaster areas affected by Hurricanes Katrina and Rita that are originated on or before December 31, 2007. The accurate delivery of this SCC is necessary to ensure that fees are assessed appropriately.
- We will update the selling system to enable it to begin capturing the new SCC on November 1.
Remember, delivery fees are cumulative and more than one fee may apply to a mortgage based on the individual characteristics of the mortgage. You can find a complete list of delivery fees in Guide Exhibit 19 [PDF 494K].
For More Information
|
