Important Reminders for Selling System Users
June 10, 2014
In our continuing efforts to provide you with the resources you need to conduct business with us, we wanted to call your attention to two important reminders about our selling system.
Reminder on Good Delivery Standards for Cash Executions
To ensure the mortgages you deliver to Freddie Mac are funded in a timely manner, the following must be completed by 12:30 p.m. ET on the last business day before either the purchase contract expires or the requested settlement date, whichever occurs first:
- Deliver the applicable mortgage data and applicable documentation to Freddie Mac.
- Deliver the Notes for all mortgages in a cash contract to the document custodian.
- Clear all of the purchase edits and allocation errors identified by the selling system with respect to the mortgages.
- Ensure that the wire instructions in the selling system account for the unpaid principal balance for all mortgages associated with the specified contract.
Warehouse lenders are required to provide a fully executed Form 996E by the same deadline.
For more information about these and other requirements for cash loans, refer to our Good Delivery Standards for Cash.
Mortgages With Application Received Dates Before January 10, 2014
Single-Family Seller/Servicer Guide Bulletin 2013-16 announced that we would no longer purchase the following mortgages with Application Received Dates on or after January 10, 2014:
- Home Possible® Mortgages with an original maturity in excess of 30 years.
- Pre-payment penalty mortgages.
To provide time to clear your pipelines, as announced in Bulletin 2013-16, you have until July 31, 2014, to deliver these mortgages with Application Received Dates before January 10, 2014.
For questions, contact 800-FREDDIE.