June Selling System Enhancements; IFI 140 No Longer Required for Home Possible® Mortgages
May 25, 2016
Selling System Enhancements Coming in June
Effective June 27, 2016, we're updating servicing selection options in the Freddie Mac Selling System®.
Adding Servicer Name to Servicer Number
For all contracts, we're adding the Servicer name to the corresponding Servicer number in drop-down fields where you designate the Servicer. This will make it easier for you to identify and assign the correct Servicer to contracts and loans. You will notice this change on the following Selling System screens:
- Take Out Cash Contract.
- Take Out Guarantor/Multi-Lender Contract.
- Modify Guarantor Contract.
- Modify Multi-Lender Contract.
- Modify Best Efforts Contract.
- Enter Settlement Details.
Validating Servicing Option Selection
For servicing-retained contracts, the Selling System will validate that the servicing option selected for the contract agrees with the servicing option selected for the loan. You'll receive a critical edit if this validation fails. For example, if the servicing option for the contract indicates servicing-retained, then the Servicer you select in the Enter Settlement Details screen must agree.
For More Information
- Visit Freddie Mac's Learning Center for more on our training programs and reference tools.
- Contact your Freddie Mac representative.
IFI 140 is No Longer Required for Home Possible Mortgages
We heard your concerns about the delivery of Investor Feature Identifier (IFI) 140 for Freddie Mac Home Possible® and Home Possible Advantage® mortgages (collectively Home Possible mortgages).
We are removing this requirement with a future Single-Family Seller/Servicer Guide (Guide) Bulletin.
You will no longer need to deliver IFI 140 for Home Possible mortgages if the income used to qualify the borrower, converted to an annual basis, does not exceed 80 percent of the applicable area median income (AMI), or the property is located in an underserved area.
All other Home Possible changes effective with settlement dates on or after July 1, 2016, remain as previously announced. For more information, please review: