• Single-Family
  • Making Home Affordable Program
  • Underwrite and Process Loans
  • Sell and Deliver Loans
    • Selling Options
    • Pricing
    • Product Delivery
    • Selling System Resource Center
    • Uniform Mortgage Data Program
  • Mortgage Products
  • Service Loans
  • Doing SF Business with Freddie Mac
  • Forms and the Guide
  • Single-Family News Center
  • Subscription Center
  • The Learning Center
• Multifamily
• Debt Securities
• Mortgage Securities
• Vendors and Suppliers

System Enhancements Improve Efficiency for Relief Refinance Mortgages You Sell for Cash

As announced in the February 11 Single-Family Seller/Servicer Guide Bulletin 2010-4, we’ve been updating our systems to more efficiently support our Cash offering for Freddie Mac Relief Refinance Mortgages^SM.

On February 22, the selling system will be updated to allow you to take out separate fixed-rate cash contracts for Relief Refinance Mortgages with loan-to-value (LTV) ratios greater than 105 percent and less than or equal to 125 percent based on the specific LTV range of the contract. Here are the changes we’re making:

New “LTV Range for the Contract” Field

We’re adding a new “LTV Range for the Contract” field on the “Take Out Cash Contract” screen. This field will:

• Include the following selection options to identify the LTV range for fixed-rate cash contracts you take out:

  • 0% - <=105% (automatic default option)
  • >105% - <=115% (for LTV ratios greater than 105 percent and less than or equal to 115 percent)
  • >115% (for LTV ratios greater than 115 percent and less than or equal to 125 percent)

  You must choose the correct option for the contract you are taking out. If you select an invalid option, you will receive a critical edit when you attempt to allocate your loan (s) to a cash contract.

• Eliminate the requirement for you to enter “Over105” in the “Contract Name” field on the “Take Out Cash Contract” screen for identifying fixed-rate cash contracts for Relief Refinance Mortgages with LTV ratios greater than 105 percent and less than or equal to 125 percent.

Additional System Update: New Message to Indicate Mortgages Ineligible for Servicing-Released Sale Option 

In addition, we’re adding a message in the selling system that indicates mortgages with LTV ratios greater than 105 percent are not eligible for sale through the servicing-released sales path. With this change, when you select the “Price Contract” button, you will receive an error message on the LTV rate sheet that states, “No Servicing Buyer exists for this Contract.”