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Delivery and Execution Tips

Pricing and Contracting Requirements

1. All Home Possible® Mortgages may be sold using the selling system under the following programs:

   • Fixed-rate Cash
   • Fixed-rate Guarantor
   • MultiLender Swap
   • WAC ARM Cash
   • WAC ARM Guarantor

2. 5/1 (2/2/5 caps), 7/1 and 10/1 convertible and nonconvertible adjustable rate mortgages (ARMs) are eligible for delivery as Home Possible Mortgages; however, convertible ARMs are not currently eligible for delivery via the selling system. We will notify you as soon as the selling system is able to support Mortgages with convertible ARMs.

Best Efforts Contracts

1. Fixed-rate Home Possible Mortgages are eligible for sale under Best Efforts Contracts.

2. ARMs, including Home Possible ARMs, are not eligible for sale under Best Efforts contracts.

Servicing Released or Servicing Retained Contracts

1. Fixed-rate Home Possible Mortgages, whether sold under Mandatory or Best Efforts contracts, are available for sale under the Servicing Released Sales Process. Cash contracts can be taken out for the Fixed Rate or ARM products and are tagged as Home Possible at the loan level by the use of the appropriate Home Possible SCC.

2. ARMs, including Home Possible ARMs, are not eligible for sale under the Servicing Released Sales Process.

3. A Concurrent Transfer of Servicing (CTOS) is allowed for Home Possible Mortgages, provided the Servicing Transferee meets our Guide requirements (is a Tier 1/Tier 2 Servicer).

4. To obtain an accurate price for a fixed-rate Home Possible Mortgage sold under a Best Efforts/Servicing Retained contract, use the following steps:

   • Create or import the loan with the appropriate Home Possible Special Characteristics Codes (SCCs)
   • Take out a Best Efforts contract using your Seller Loan Number
   • Or, if the loan is not in the system, enter loan data via the Create Loan for Best Efforts Contract screen
   • From the Best Efforts Contract Details screen, select the Seller Loan Number
   • Modify Loan – Enter the appropriate Home Possible SCC(s)

5. For the latest information on mortgages eligible for sale under the Servicing Released Sales Process see the selling system Availability Matrix.

Delivery Requirements

1. To ensure the Home Possible Mortgages you deliver are identified correctly in our systems, you'll need to provide one of the following SCCs, in addition to any other applicable SCCs:

   • G00 = Home Possible 97
   • G01 = Home Possible Neighborhood Solution 97
   • G02 = Home Possible 100
   • G03 = Home Possible Neighborhood Solution 100
   • G20 = Home Possible 3% Cash
   • G21 = Home Possible Neighborhood Solution 3% Cash

   Please Note: Home Possible Mortgages require alphanumeric SCCs, which may require changes to your systems. Visit www.freddiemac.com/homepossible/hp_codes.html for details.

2. You must also deliver SCC 071 in addition to the appropriate Home Possible SCCs, as well as any other applicable SCCs. As a result, you’ll need to be prepared to complete the following data fields: secondary financing, down payment source/amount, closing cost source/amount, and borrower education administration/format.

3. The following fields on the Form 11 or Form 13SF must also be completed for all Home Possible Mortgages:

   • Down Payment Sources
   • Down Payment Amounts
   • Closing Cost Sources
   • Closing Cost Amounts
   • Secondary Financing Sources
   • Secondary Financing Amounts
   • Borrower Education Counseling Codes