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Collateral Rep and Warranty Relief Now Available in Freddie Mac Loan Advisor Suite®

March 23, 2017

Beginning April 3, 2017, you’ll have access to immediate certainty related to collateral representation and warranty relief on eligible Loan Product Advisor® loans you deliver through the Freddie Mac Selling System®. Please refer to Single-Family Seller/Servicer Guide Bulletin (Guide) 2017-3 for details on requirements.

Here’s How It Works

Starting March 31, when you submit appraisals to Freddie Mac using the Uniform Collateral Data Portal® (UCDP®), Loan Collateral Advisor® will assess and indicate rep and warranty relief eligibility and return an eligibility feedback message through the UCDP. You will also receive notification of eligibility in the indicator within the Loan Product Advisor Feedback Certificate for eligible appraisals starting April 2. And beginning on April 3, when you deliver the loan through the Selling System, you’ll receive final confirmation of rep and warranty relief.

New UCDP Proprietary Messages

The list of Freddie Mac UCDP proprietary messages has been updated to reflect the new eligible (FRE0000) and not eligible (FRE0001) collateral rep and warranty relief eligibility messages.

Loan Advisor Suite® Enhancements

Many of the tools within Loan Advisor Suite® have been updated for this new offering, as well as  adding new features to further improve and streamline your experience.

  • The Loan Product Advisor Feedback Certificate now includes an indicator (eligible or not eligible) to provide notification of collateral rep and warranty relief eligibility. Loan Product Advisor feedback messages have been revised to reflect these changes. Loans must be submitted to Loan Product Advisor to be eligible.
  • Loan Collateral Advisor has a new eligibility indicator, and its feedback messages have been revised to reflect the new eligibility messages and indicators. On March 31, Loan Collateral Advisor is also releasing the following enhancements:
    • New message category – better describes valuation and appraisal quality risk scores as “Notifications” and not “Warnings”.
    • New “Appraiser Order” column in comparables – provides comparables in the order the appraiser listed the properties for more insight.
    • Comparables sales and listing icons – enhanced "Comparables Markers" indicate sales and listing icons for better visibility and more clarity (includes map legend with icon definitions).
  • Loan Quality Advisor now indicates eligibility for rep and warranty relief through an indicator similar to those found in Loan Product Advisor and Loan Collateral Advisor.
  • Selling System’s eligibility indicator provides final confirmation of rep and warranty relief, beginning with loans evaluated on or after April 3.
  • Loan Coverage Advisor® allows you to track your reps and warranties as you always have. Loans that receive collateral rep and warranty relief will reflect a “0 month” value for the rep and warranty period. You will also see that the “relief date” is the same as the “funding date”, and a relief indicator will show a blue check for collateral. In addition, on March 31, Loan Coverage Advisor is making the following enhancements:
    • Notifications – an alert that asynchronous search reports have finished running.
    • New reports – you asked for these reports, and we listened:
      • Relief Summary Report – full portfolio review of all relief given since 2013.
      • Relief Reconciliation Report and Obligation Reconciliation Report – identifying events that changed relief/obligation and summarizing them for easy review.
    • Loan risk details updated – simplified navigation, takes you straight to the data you need. And the new Event Summary table is easier to read and allows you to quickly view all events (changes to relief/obligation) on a loan and their impact.

For More Information

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