Using Freddie Mac Property Valuation Data
Freddie Mac provides proprietary property valuation information through multiple tools, including Loan Prospector®, Uniform Collateral Data Portal® (UCDP®), BPOdirect®, and other third-party distribution methods. These tools return an estimate of property value generated by our proprietary automated valuation system, Home Value Explorer® (HVE®). By providing HVE data and other loan-level data elements, our tools are designed to help Seller/Servicers assess their risk during the loan manufacturing process, solicit and originate Freddie Mac Relief Refinance MortgagesSM, facilitate the delivery of property valuation information at the time of purchase, and evaluate eligibility for loan modifications.
On this page you’ll find:
- Language that should accompany Freddie Mac’s proprietary property valuation information when providing this information to loan applicants or borrowers.
- Instructions you should follow when you share our proprietary valuation information obtained through certain tools with loan applicants and borrowers.
The language and instructions are designed to help you in your disclosure efforts to meet applicable industry regulations and to make our valuation data easier for loan applicants and borrowers to understand.
Loan Prospector may return HVE data on the Loan Prospector Feedback Certificate, which may be shared with a loan applicant or borrower provided that the certificate includes a disclaimer and supporting text.
- For LoanProspector.com users. Until Loan Prospector is updated with supporting text regarding HVE data and valuation information, you should include this disclaimer and supporting text when providing the Loan Prospector Feedback Certificate to borrowers as an interim solution.
- For system-to-system users who are customizing reports. If you are customizing your disclosure reports intended for borrowers or loan applicants, you should extract our property valuation data and include supporting text that explains the data fields we provide as outlined in the following instructions.
- For system-to-system users who are using Freddie Mac style sheet instructions. Freddie Mac is providing technical instructions that will allow you to update your systems and isolate the HVE data for use when sharing this information with loan applicants and borrowers. Until Loan Prospector is updated with supporting text regarding HVE data and valuation information, you should include the supporting text and if needed, definitions found on the Seller/Servicer Property Valuation Formatting Instructions. If you have any questions and would like to discuss this in more detail, please contact your Loan Prospector Technology Relationship Manager, Vendor Relationship Manager or Verification Analyst.
- For users of the HVE Tool for Relief Refinance Mortgages – Same Servicer. When originating Relief Refinance Mortgages – Same Servicer, you may use the HVE data obtained from the HVE tool which you can access through LoanProspector.com. Until the HVE look-up tool is updated with supporting text regarding HVE data and valuation information, users of this tool should attach this supporting text when sharing the valuation information with borrowers or loan applicants.
Uniform Collateral Data Portal
The UCDP currently provides valuation information generated by HVE, including the HVE point value estimate. Prior to the January 18, 2014, effective date of the Consumer Financial Protection Bureau final rule on the Equal Credit Opportunity Act amendment under Regulation B, HVE valuation messages will be temporarily suspended and access to HVE point value estimates through UCDP will not be available.
Servicers may check for an HVE point of value estimate (also known as "Auto Value") in BPOdirect or must order a broker price opinion (BPO), if required, through BPOdirect when determining the value of a property. BPOdirect has been updated to include the following additional language for an Auto Value or for a BPO.
Consumer Web page
A Freddie Mac Web page will be available in January 2014 that will include consumer-focused information about our tools and the valuation data these tools generate. You may direct your loan applicants and borrowers to this Web page.