Your Questions Answered
- I saw that Freddie Mac implemented a new online password reset capability on February 24, 2014 for Freddie Mac Single-Family applications. Does this password reset tool work for all Single-Family services and applications?
- Once I create a profile to utilize the self-service password reset tool, what activities will I be able to complete?
- I have taken out a fixed-rate mortgage (FRM) cash contract under the best efforts servicing- released execution option, but my borrower wants to switch to an adjustable-rate mortgage (ARM). Can I substitute the FRM loan with the ARM loan to fulfill the contract?
- How are cash pair-off fees calculated by Freddie Mac?
- If I have a borrower that has a primary residence that is a condo and the Condominium Unit, the Condominium Unit Mortgage and the Condominium Project all comply with Freddie Mac's requirements, can I process the loan under Freddie Mac's Streamlined Review and offer a maximum LTV of 90%?
- Does Freddie Mac purchase mortgages secured by rural properties?
I saw that Freddie Mac implemented a new online password reset capability for Freddie Mac Single-Family applications. Does this password reset tool work for all Single-Family services and applications?This new online password reset capability is for Single-Family business applications that require a user ID and password. Certain Single-Family business services and applications do not support these new capabilities, including the Freddie Mac Reimbursement System, BPO Direct®, HomeSteps®, Global Payments, Inc. payment service, and joint government-sponsored enterprise applications. Please continue to use existing password reset processes for these applications.
As a reminder, all users must establish a user profile by July 21, 2014 in order to access the supported business applications. View our User Profile and Password Reset Tutorial to learn more about this new self-service solution.
Once you've created your user profile, you'll be able to:
- Update your personal information and security questions.
- Change an existing password.
- Reset a forgotten password.
- Retrieve a forgotten user ID.
This self-service solution allows you to manage your personal information and password for Single-Family business applications at any time. You no longer have to contact Freddie Mac Customer Support (800-FREDDIE) during normal operating hours.
I have taken out a fixed-rate mortgage (FRM) cash contract under the best efforts servicing- released execution option, but my borrower wants to switch to an adjustable-rate mortgage (ARM). Can I substitute the FRM loan with the ARM loan to fulfill the contract?No. ARMs are not eligible under our best efforts servicing-released, best efforts servicing-retained, or mandatory servicing-released options. You can solve for this by canceling your best efforts commitment for the FRM loan, and take out new mandatory cash, servicing-retained contract.
For more information about the mortgage products that are eligible for sale under our best efforts servicing-released and servicing-retained, and mandatory servicing-released executions, please see the Selling System Availability Matrix. You can also contact 800-FREDDIE if you need additional information.
When you do not fulfill a mandatory cash commitment, Freddie Mac will take into consideration the difference between the current market price minus the original contract price, plus a pair-off cost which typically averages 0.125%. This calculation results in the pair-off fee rate. To determine the actual cost of the pair-off fee, Freddie Mac will multiply the pair-off amount by the pair-off fee rate. The pair-off amount is equal to the original commitment amount minus the applicable purchase tolerance, minus the amount of the mortgages previously purchased by Freddie Mac under the applicable purchase contract. The calculation of the pair-off amount could result in a fee due to Freddie Mac or a credit back to you resulting from the difference between the market pricing at the time of the original commitment and the date of the pair-off.
If I have a borrower that has a primary residence that is a condo and the Condominium Unit, the Condominium Unit Mortgage and the Condominium Project all comply with Freddie Mac's requirements, can I process the loan under Freddie Mac's Streamlined Review and offer a maximum LTV of 90%?Yes, you may process such a loan under our streamlined review. For Established Condominium Projects that are eligible for our streamlined project review, you will benefit from reduced project eligibility requirements (Owner-occupancy, project budget, and delinquent assessment requirements are not required for the Streamlined Reviews).
To be eligible for a maximum LTV of 90%, you must have an LP Accept. If you don't have an LP Accept, the maximum LTV you can offer is 80%. (These LTVs apply to Condominium projects that are not located in Florida. For maximum LTVs for condominium projects in Florida, please see Chapter 42.4(d)).
For more information on Freddie Mac's condominium policies, please see Chapter 42 of the Guide, or our Condominium Project Review page on FreddieMac.com.
Yes. We buy mortgages secured by residential properties in all markets, including rural locations, as long as the subject property is adequate collateral for the mortgage transaction based on the value, condition, and marketability of the property.
Check out these resources for more information about properties located in rural markets:
- Guide Section 44.
- Clarifying Misconceptions on Freddie Mac Requirements for Rural Properties fact sheet.
- Reviewing Residential Properties webinar.