System Enhancements to Support Recently Announced Delivery Requirements for Freddie Mac Relief Refinance MortgagesSM and Rate Spread Data
On September 28, we’re updating the selling system to allow you to meet recently announced delivery requirements for Freddie Mac Relief Refinance Mortgages, including fixed-rate mortgages with LTV ratios greater than 105 percent and less than or equal to 125 percent, and delivery requirements for rate spread data.
Delivering Relief Refinance Mortgages
With our September 28 selling system enhancements, we are updating the system to align with delivery requirements for Relief Refinance Mortgages announced in recent Single-Family Seller/Servicer Guide (Guide) Bulletins.
These changes include:
- Adding special characteristic code (SCC) H08 for Relief Refinance Mortgages – Open Access. As announced in the June 26 Guide Bulletin 2009-15, Relief Refinance Mortgages – Open Access must have Freddie Mac settlement dates on or after October 1, 2009, and must be sold through the selling system. You must deliver the following SCCs in one of the first five positions:
- 007 – No Cash-out Refinance Mortgage
- H08 – Freddie Mac Relief Refinance Mortgage – Open Access
Please note that SCC H08 should be used instead of SCC H06 when delivering Relief Refinance Mortgages – Open Access. SCC H06 should be used only when delivering Relief Refinance Mortgages – Same Servicer.
- Adding new security product selections for Relief Refinance Mortgages with LTVs greater than 105 percent sold through our Fixed-rate Guarantor execution. With our July 24 Guide Bulletin 2009-20, we announced that fixed-rate Relief Refinance Mortgages with LTV ratios greater than 105 percent must be pooled separately in PC pools comprised entirely of Relief Refinance Mortgages with LTV ratios greater than 105 percent.
Because mortgages with these higher LTV ratios are not eligible for sale in the TBA market, they must be pooled separately. Therefore, you must select specific security products in the selling system.
To access these product options, go to the “Take Out Guarantor Contract” screen. Then, choose the following products from the “Security Product” drop-down menu:
- 30-year Gold PC High LTV >105 – <125%
- 20-year Gold PC High LTV >105 – <125%
- 15-year Gold PC High LTV >105 – <125%
See Guide Exhibit 17S for additional information about these new security products.
For more information on delivery requirements for Relief Refinance Mortgages, see our job aid available in The Learning Center on FreddieMac.com.
Revised Delivery Requirements for Rate Spread Data
With the July 8 Guide Bulletin 2009-17, we announced revised instructions for delivery of rate spread data, which are driven by recent changes in Federal Reserve Board regulations for the Home Mortgage Disclosure Act (HMDA). With our September 28 changes, we are updating the “Rate Spread” field on Form 11, Mortgage Submission Schedule, and Form 13SF, Mortgage Submission Voucher, to reflect our revised delivery requirements for rate spread data.
Under our revised requirements, you must deliver the rate spread for all mortgages with a rate spread equal to or greater than 1.5 percentage points. This change in our delivery requirements for rate spread data is consistent with how lenders determine and report rate spread data under the revised HMDA rules and is effective for all mortgages with application dates on or after October 1, 2009, and for all mortgages with note dates on or after January 1, 2010, regardless of the application date.
Please note: Although we are updating Form 11 and Form 13SF to meet revised delivery requirements for rate spread, effective October 1, all selling system deliveries will receive a critical edit if you attempt to deliver a rate spread that is below 1.5 percentage points.