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Calculating Required Reserves is Getting Easier

November 8, 2017

To streamline your underwriting process, we're updating Loan Product Advisor® to automatically calculate the additional required reserves when the subject property is a second home or an investment property effective for all submissions and resubmissions on and after November 12, 2017.

This means that you should no longer manually calculate the additional required reserves when your borrower has additional financed second homes or investment properties for which the borrower is obligated.* This amount will automatically be included in the Required Reserves field on the Loan Product Advisor Feedback Certificate.

*Note: If manual calculation of additional required reserves is performed on and after November 12, the required reserves calculation will be incorrect – it will result in an over-calculation of the amount of reserves required.

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The Freddie Mac Single-Family Seller/Servicer Guide (Guide) will be updated with these requirements in a future Guide Bulletin.

For More Information

  • Read the Understanding Loan Product Advisor's Determination of Reserve Requirements job aid.
  • Review the updated Loan Product Advisor feedback messages for Required Reserves.
  • Contact your Freddie Mac representative.

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