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Updates to Relief Refinance Mortgage Cash Adjustor and Condominium Requirements Announced in Bulletin 2013-13

July 18, 2013

To reflect current market conditions in our cash pricing, we are updating the cash adjustor value and applicability for Freddie Mac Relief Refinance MortgagesSM and changing the way you can obtain the cash adjustor values with Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-13.

In response to your feedback and based on our review of our requirements, today’s Guide Bulletin also includes important updates to our requirements for evaluating authorized user accounts, condominium project review and eligibility, and properties with resale restrictions. 

Review today’s Guide Bulletin and the applicable Guide chapters for complete information on the revised requirements summarized below.

Originate & Underwrite

  • Authorized user accounts. We are providing you additional guidance and flexibility when evaluating borrowers’ credit reports containing authorized user accounts. If a borrower’s credit report indicates any authorized user accounts that do not meet our current requirements, Sellers may not have to invalidate the Loan Prospector® decision or disregard the FICO score on a manually underwritten mortgage, provided certain requirements are met. 
  • Condominium project review and eligibility requirements. We are simplifying our condominium project review and eligibility requirements, and providing a diagram for additional clarity to illustrate the application of our condominium project requirements and review types.
  • Resale restriction requirements. We are streamlining our requirements for mortgages on properties subject to resale restrictions. In addition, we are eliminating our requirements for mortgages on properties without resale restrictions that are located in projects and subdivisions with properties that have resale restrictions.

Sell & Deliver

  • Cash adjustor updates for Relief Refinance Mortgages effective for cash commitments taken out on and after July 19, 2013. In response to current market conditions, we are reinstating the cash adjustor for fixed-rate Relief Refinance Mortgages with LTV ratios greater than 105 percent and less than or equal to 125 percent. We are also revising the cash adjustor value for loans with LTV ratios greater than 125 percent. The cash adjustor values will now only be available through Cash Adjustor for Relief Refinance Mortgages, a resource listed under the “Selling System Resources” section of the selling system welcome page.
  • ULDD requirements. We are updating certain Uniforn Loan Delivery Dataset (ULDD) requirements pertaining to:
    • Condominium Unit Mortgages
    • Manufactured homes
    • New Guide Exhibit 34, Investor Feature Identifiers

Get More Information

For detailed information on the updated requirements announced in today’s Guide Bulletin:

  • Review Guide Bulletin 2013-13.
  • Register for our Condominium Projects Eligibility Requirements webinar. 
  • Look for the matrix, Cash Adjustor for Relief Refinance Mortgages, on the selling system welcome page.
  • Review the ULDD web site.
  • Contact your Freddie Mac representative or 800-FREDDIE.

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