Obtain Credit Bid Functionality
The Obtain Credit Bid functionality is available through the Freddie Mac Service Loans application. By entering basic data for an eligible mortgage, you are provided with a foreclosure sale bid, referred to as a credit bid, which represents the maximum amount that Freddie Mac will authorize Servicers to bid on Freddie Mac’s behalf at a foreclosure sale.
Eligible mortgages include first-lien mortgages not covered by mortgage insurance, unless Freddie Mac has delegations of authority with the Mortgage Insurer, not insured by the Federal Housing Administration, not guaranteed by the U.S. Department of Veteran Affairs or Rural Housing Service, or not otherwise subject to a credit enhancement.
How It Works
Step 1: Register for the Obtain Credit Bid functionality by visiting the Service Loans Application Resource Center. When registering for the Obtain Credit Bid functionality, Servicers should input the Servicer number(s) that are applicable to the identified user in the appropriate Freddie Mac Service Loans Application Authorized User Roles Form.
Step 2: Once registered, Servicers will submit a request to Freddie Mac for the credit bid using the Obtain Credit Bid functionality.
Step 3: A credit bid will be returned by the Service Loans application with a "good through date" indicating the length of time for which the credit bid will be valid, and an estimated sale date (i.e. 45 days from the submission date).
To ensure that you have a credit bid in time for the foreclosure sale, Freddie Mac recommends that you submit a request for the credit bid no less than 30 and no more than 90 days before the scheduled sale date.
- Reduces the need to track multiple and varying foreclosure sale bidding guidelines.
- Provides a single source for credit bids, which allows for more efficient foreclosure sales.
- Replaces the need for a Servicer to obtain a property value to prepare foreclosure sale bids in connection with scheduled foreclosure sales for eligible mortgages.
- Provides bulk import capabilities with validation results in a matter of minutes.
- Leverages the Service Loans application, which is the primary gateway into Freddie Mac for servicing-related functions.
Using the Functionality
- Access the Freddie Mac Service Loans application.
- From the My Home page, click the Obtain Credit Bid tab.
- Click Search, New Request, or Bulk Import.
- At a minimum, enter required data fields marked with an asterisk.
- Click Submit.
Bulk Import Capability
The bulk import feature in the Obtain Credit Bid functionality will enable you to import a single loan or multiple loans, and request a credit bid for each loan. Importing multiple loans reduces the amount of time that would otherwise be required to enter each loan manually. This feature is unique to the Obtain Valuation and Obtain Credit Bid functionalities and will not work for other functions in the Service Loans application such as Manage Loans.
You must use the file layout available on the Obtain Credit Bid – Bulk Import page in the Service Loans application, or you must match your data to the file layout. The loan data must be in either a comma separated value (.csv) or a text (.txt) format.
Mortgage Insurance (MI) Delegation
Beginning January 16, 2015, you must refer to the "Delegated MI Companies" list in the Freddie Mac Service Loans application when preparing foreclosure sales on mortgages with MI policies.
- Servicers can approve Standard Short Sales that are completed in accordance with the Guide without obtaining pre-approval from the participating MI companies.
- Servicers can access the list of participating MI companies in the Service Loans application by selecting “Delegated MI Companies” link in the Home tab.
- The list will be updated from time to time if MI companies are added or removed from the list.
Other mortgage and borrower eligibility requirements apply, as noted in Guide Section 9208.2.
Training and Resources
- Visit the Learning Center's Service Loans Application Web page for all Service Loans application training opportunities and educational resources, including:
- Register for the Freddie Mac Obtain Credit Bid webinar to learn more about Freddie Mac’s revised foreclosure sale bidding requirements.
For More Information
- Visit the Service Loans Application Resource Center.
- Contact your Freddie Mac representative.