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Relief Refinance Mortgage FAQs

The following answers to frequently asked questions about the Freddie Mac Relief Refinance MortgageSM provide additional guidance on our requirements for this offering, but are not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide (Guide) or the terms of your Master Agreement and/or Master Commitment.

For complete requirements, review Guide Chapter A24 for Relief Refinance Mortgages – Same Servicer and Guide Chapter B24 for Relief Refinance Mortgages – Open Access.

General

  1. Does a property have to decline in value for a borrower to be eligible for the Relief Refinance Mortgage?
  2. Do all of your existing features for Relief Refinance Mortgages apply to Relief Refinance Mortgages with LTV ratios greater than 105 percent?

Mortgage and Property Type

  1. Are Home Possible® Mortgages eligible for the Relief Refinance Mortgage offering?
  2. Are Section 502 Guaranteed Rural Housing (GRH) Mortgages, Section 184 Native American Mortgages, and FHA/VA Mortgages eligible for the Relief Refinance Mortgage offering?
  3. Are super conforming mortgages eligible for the Relief Refinance Mortgage offering?
  4. Are prepayment penalty mortgages eligible for the Relief Refinance Mortgage offering?
  5. Are Streamlined Refinance Mortgages eligible for the Relief Refinance Mortgage offering?
  6. If the mortgage being refinanced is a balloon/reset mortgage, may the Relief Refinance Mortgage be an ARM?
  7. When are ARM-to-ARM refinances allowed under the Relief Refinance Mortgage offering?
  8. Can I refinance a mortgage under the Relief Refinance Mortgage offering if the existing mortgage is a second home or investment property mortgage and the borrower now occupies the property as a primary residence?
  9. Can a Relief Refinance Mortgage be amortized for a period other than 15, 20, or 30 years?

General Underwriting Requirements

  1. Is there a maximum debt-to-income ratio requirement for Relief Refinance Mortgages?
  2. Are employment and income verification required for Relief Refinance Mortgages?
  3. Are reserves required for Relief Refinance Mortgages?
  4. Are escrows required for Relief Refinance Mortgages?
  5. Is flood certification required for Relief Refinance Mortgages?
  6. If a borrower has 10 financed properties, do your old requirements permitting up to 10 financed properties or your new requirements permitting up to four financed properties apply to Relief Refinance Mortgages?

LTV Ratios

  1. Is a Relief Refinance Mortgage with an LTV ratio that is lower than the LTV ratio on the existing mortgage eligible for this offering?
  2. Is a mortgage eligible for the Relief Refinance Mortgage offering if the borrower's previous application for a refinance was cancelled or denied because the LTV ratio was too high?
  3. May borrowers pay down the mortgage through a principal curtailment in order to bring the unpaid principal balance (UPB) down to an eligible Relief Refinance Mortgage LTV ratio of 125 percent?

Indicator Scores

  1. Is the Relief Refinance Mortgage eligible if the borrower has a low credit score?
  2. Is the Relief Refinance Mortgage eligible if the borrower does not have a usable credit score due to insufficient or inaccurate information?
  3. If the principal and interest payment on the Relief Refinance Mortgage – Same Servicer increases by less than 20 percent and I don't have to requalify the borrower, do I still have to deliver an Indicator Score?

Closing Costs

  1. Can the Relief Refinance Mortgage closing costs that exceed the lesser of $5,000 or 4 percent of the unpaid principal balance of the mortgage being refinanced be rolled into the existing secondary financing?
  2. Do I have to document the source of closing costs paid by the borrower for Relief Refinance Mortgages?
  3. When paying off the existing mortgage with proceeds from the Relief Refinance Mortgage, can the UPB be rounded up or down to the nearest thousand?
  4. May a borrower elect a higher interest rate for the Relief Refinance Mortgage and apply the premium pricing toward closing costs, financing costs and prepaids/escrows?

Secondary Financing

  1. When refinancing a junior lien to the Relief Refinance Mortgage, does the HELOC limit have to be reduced if the full amount of the loan was not drawn?

Principal and Interest Payment

  1. If the existing mortgage is an Initial InterestSM Mortgage or an ARM, what monthly mortgage payment must I use to determine the new principal and interest payment for the Relief Refinance Mortgage?
  2. Is completing a loan application required if a borrower does not need to be requalified because the principal and interest payment on the Relief Refinance Mortgage – Same Servicer will increase by less than 20 percent?

Loan Prospector®

Note: Relief Refinance Mortgages – Same Servicer may not be submitted to Loan Prospector.

  1. If the mortgage being refinanced is a government loan will Loan Prospector let me know that it is ineligible for the Relief Refinance Mortgage – Open Access?
  2. If the mortgage being refinanced is ineligible for the Relief Refinance Mortgage – Open Access because it was delivered to Freddie Mac with a credit enhancement will Loan Prospector indicate what type of credit enhancement?
  3. Will Loan Prospector automatically identify mortgages eligible for the Relief Refinance Mortgage – Open Access?
  4. Are mortgages submitted through Loan Prospector that receive an Ineligible, Incomplete or Invalid eligible for the Relief Refinance Mortgage – Open Access?
  5. If I don't have the mortgage file for the mortgage being refinanced, how do I find the Freddie Mac loan number and the mortgage insurance certificate number required for delivering Relief Refinance Mortgages – Open Access?
  6. Will Loan Prospector indicate if the Relief Refinance Mortgage – Open Access meets the three-month seasoning requirement?

Mortgage Insurance

  1. Is mortgage insurance required on the Relief Refinance Mortgage?
  2. If the existing mortgage did not require mortgage insurance because the LTV ratio was 80 percent or less, what level of mortgage insurance is needed if the LTV ratio on the Relief Refinance Mortgage exceeds 80 percent?
  3. Is mortgage insurance required if the existing mortgage was originated with mortgage insurance but no longer requires it due to natural amortization or principal reduction and the Relief Refinance Mortgage has an LTV ratio greater than 80 percent?
  4. Are mortgages with lender-paid mortgage insurance eligible for the Relief Refinance Mortgage?
  5. How do I transfer mortgage insurance from the old mortgage to the new mortgage?
  6. If the Mortgage Insurer will not transfer the mortgage insurance to the new mortgage, is the mortgage still eligible for sale to Freddie Mac?
  7. If the Mortgage Insurer issues a replacement certificate number for the mortgage insurance being transferred to the Relief Refinance Mortgage where do I input this information?

Collateral Assessment

  1. Is obtaining an exterior-only appraisal acceptable for determining property value for Relief Refinance Mortgages?
  2. Should I keep the original appraisal in the existing mortgage file or the Relief Refinance Mortgage file if I am using the original appraisal for the Relief Refinance Mortgage – Same Servicer?

Home Value Explorer®

Notes: 1) Use of HVE is not permitted for Relief Refinance Mortgages – Open Access; 2) Seller/Servicers must meet the terms and conditions defined in Guide Exhibit 32 when using Freddie Mac's HVE look-up tool.

  1. What is Home Value Explorer (HVE)?
  2. May I use HVE to estimate property values for the Relief Refinance Mortgage – Open Access?
  3. Can you explain the HVE data fields?
  4. How do I access HVE to obtain the value of the property for the Relief Refinance Mortgage – Same Servicer?
  5. Do I need a new user ID and password to access the HVE look-up tool?
  6. What information must be submitted to the HVE look-up tool to receive a point value estimate?
  7. If the HVE point value estimate does not support the value needed for the Relief Refinance Mortgage – Same Servicer, may I obtain a new appraisal or use the appraisal from the existing mortgage?
  8. Can I use the high or low HVE value estimates instead of the HVE point value estimate for determining property value for the Relief Refinance Mortgage – Same Servicer?
  9. What documentation is required when using HVE point value estimates for the Relief Refinance Mortgage – Same Servicer?
  10. May I use HVE to estimate property values for Relief Refinance Mortgages – Same Servicer with LTV ratios greater than 105 percent?
  11. How do I access the HVE look-up tool if I am not a Loan Prospector user?
  12. Does the HVE look-up tool support batch requests?
  13. How will I be notified when my HVE batch request is ready?

Delivery Fee Cap

  1. How does Freddie Mac apply the 200 basis point Relief Refinance Mortgage delivery fee cap?
  2. Are all delivery fees included in the 200 basis point delivery fee cap?
  3. Is the Market Condition delivery fee included in the 200 basis point delivery fee cap?
  4. Is the cash adjustor included in the 200 basis point delivery fee cap?

Reduced Term Incentive

Note: The reduced term incentive only applies to eligible Relief Refinance Mortgages with LTV ratios greater than 105 percent.

  1. How is the reduced term incentive for Relief Refinance Mortgages with LTV ratios greater than 105 percent applied?
  2. Will the reduced term incentive apply if I refinance a borrower from a 40-year fixed-rate mortgage into a 30-year fixed-rate mortgage?

Delivery and Execution Requirements

  1. Are there any special delivery requirements for Relief Refinance Mortgages – Same Servicer?
  2. How do I deliver Relief Refinance Mortgages with LTV ratios greater than 105 percent under the Guarantor execution?

Cash Contracts

  1. Can I commingle Relief Refinance Mortgages that have LTV ratios greater than 105 percent with Relief Refinance Mortgages that have LTV ratios less than or equal to 105 percent in the same cash commitment?
  2. If I have to enter "Over105" in the "Contract Name" field when taking out cash commitments for Relief Refinance Mortgages with LTV ratios greater than 105 percent does that mean I can no longer use that field for internal naming conventions?
  3. Does the "O" in "Over105" have to be capitalized?
  4. If I took out a contract for Relief Refinance Mortgages with LTV ratios greater than 105 percent, and the mortgages end up having LTV ratios less than 105 percent when I close them, do I need to pair out of the contract?

Cash Adjustor

Note: The cash adjustor only applies to Relief Refinance Mortgages with LTV Ratios greater than 105 percent that are sold to Freddie Mac for cash.

  1. Where do I find the cash adjustor value required for Relief Refinance Mortgages with LTV ratios greater than 105 percent that are sold to Freddie Mac for cash?
  2. Is the cash adjustor subject to change?
  3. When is the cash adjustor for Relief Refinance Mortgages with LTV ratios greater than 105 percent applied?


General

  1. Does a property have to decline in value for a borrower to be eligible for the Relief Refinance Mortgage?

    No. The Relief Refinance Mortgage is intended to help borrowers who are current on their mortgage payments and have been unable to refinance because of declining property values, but it is not a requirement of the offering.

  2. Do all of your existing features for Relief Refinance Mortgages apply to Relief Refinance Mortgages with LTV ratios greater than 105 percent?

    No. Relief Refinance Mortgages with LTV ratios greater than 105 percent may not be adjustable-rate mortgages (ARMs). Additionally, these mortgages are not eligible for our MultiLender Swap execution or our servicing-released sales process. It is important that you carefully review Guide Chapters A24 and B24 to fully understand our requirements for Relief Refinance Mortgages with LTV ratios greater than 105 percent.

Mortgage and Property Type

  1. Are Home Possible® Mortgages eligible for the Relief Refinance Mortgage offering?

    The existing mortgage may be a Home Possible Mortgage, but the Relief Refinance Mortgage may not be a Home Possible Mortgage.

  2. Are Section 502 Guaranteed Rural Housing (GRH) Mortgages, Section 184 Native American Mortgages, and FHA/VA Mortgages eligible for the Relief Refinance Mortgage offering?

    No. The existing mortgage must be a conventional first-lien mortgage currently owned or securitized by Freddie Mac. Additionally, the Relief Refinance Mortgage may not be a Section 502 GRH Mortgage, Section 184 Native American Mortgage, or FHA/VA Mortgage.

  3. Are super conforming mortgages eligible for the Relief Refinance Mortgage offering?

    Yes. Both the existing mortgage and the Relief Refinance Mortgage may be a super conforming mortgage.

  4. Are prepayment penalty mortgages eligible for the Relief Refinance Mortgage offering?

    The existing mortgage can have a prepayment penalty, but the Relief Refinance Mortgage may not have a prepayment penalty.

  5. Are Streamlined Refinance Mortgages eligible for the Relief Refinance Mortgage offering?

    The existing mortgage may be a Streamlined Refinance Mortgage, but the Relief Refinance Mortgage may not be a Streamlined Refinance Mortgage.

  6. If the mortgage being refinanced is a balloon/reset mortgage, may the Relief Refinance Mortgage be an ARM?

    Yes. Only refinancing from a fixed-rate mortgage to an ARM is prohibited under the Relief Refinance Mortgage offering.

  7. When are ARM-to-ARM refinances allowed under the Relief Refinance Mortgage offering?

    A borrower can refinance from an ARM to a fully amortizing 5/1, 7/1 or 10/1 ARM as long as the borrower's interest rate on the Relief Refinance Mortgage is lower than the interest rate on the existing mortgage and the LTV ratio of the Relief Refinance Mortgage does not exceed 105 percent.

  8. Can I refinance a mortgage under the Relief Refinance Mortgage offering if the existing mortgage is a second home or investment property mortgage and the borrower now occupies the property as a primary residence?

    Yes. A Relief Refinance Mortgage – Same Servicer is eligible for sale as a primary residence mortgage if the mortgage being refinanced was underwritten and sold to Freddie Mac as a second home or investment property mortgage, and the property is now an owner-occupied primary residence. A Relief Refinance Mortgage – Open Access must accurately reflect the current occupancy status and be underwritten based on that status.

  9. Can a Relief Refinance Mortgage be amortized for a period other than 15, 20, or 30 years?

    Yes. For example, a 27-year Relief Refinance Mortgage can be sold to Freddie Mac as a 30-year mortgage provided it meets the requirements for Relief Refinance Mortgages in Guide Chapter A24 or B24, as applicable.

General Underwriting Requirements

  1. Is there a maximum debt-to-income ratio requirement for Relief Refinance Mortgages?

    The Relief Refinance Mortgage – Same Servicer does not have a maximum debt-to-income ratio requirement, unless the principal and interest payment between the current and new payment increases by more than 20 percent in which case the maximum debt-to-income ratio is 45 percent.
    For the Relief Refinance Mortgage – Open Access, Loan Prospector® determines the maximum debt-to-income ratio during assessment. If the mortgage must be manually underwritten because it receives a Caution risk class and no A-minus eligible purchase eligibility message the mortgage must meet our maximum debt-to-income ratio requirements in Guide Chapter 37.16.

  2. Are employment and income verification required for Relief Refinance Mortgages?

    Verification of income and employment is only required for Relief Refinance Mortgages – Same Servicer if the principal and interest payment on the refinance mortgage increases by more than 20 percent. Relief Refinance Mortgages – Open Access must be fully underwritten and require employment and income verification as part of the underwriting process.

  3. Are reserves required for Relief Refinance Mortgages?

    No. Reserves are not required for Relief Refinance Mortgages.

  4. Are escrows required for Relief Refinance Mortgages?

    Our normal escrow requirements apply to Relief Refinance Mortgages as defined in Guide Section 59.1.

  5. Is flood certification required for Relief Refinance Mortgages?

    Flood zone determination must be made for each mortgage sold to Freddie Mac, including Relief Refinance Mortgages. See Guide Section 58.3 for requirements.

  6. If a borrower has 10 financed properties, do your old requirements permitting up to 10 financed properties or your new requirements permitting up to four financed properties apply to Relief Refinance Mortgages?

    For Relief Refinance Mortgages – Same Servicer, you must represent and warrant that the mortgage being refinanced met the requirements that were in effect at the time the mortgage was sold to Freddie Mac. You do not need to represent and warrant to the current requirements in Guide Chapter 22.

    For Relief Refinance Mortgages – Open Access you must meet the current requirements of Guide Chapter 22, which permits up to four financed properties.

LTV Ratios

  1. Is a Relief Refinance Mortgage with an LTV ratio that is lower than the LTV ratio on the existing mortgage eligible for this offering?

    Yes. There is no minimum LTV ratio requirement for the Relief Refinance Mortgage.

  2. Is a mortgage eligible for the Relief Refinance Mortgage offering if the borrower's previous application for a refinance was cancelled or denied because the LTV ratio was too high?

    Yes. There are no restrictions on refinancing under this offering if a previous mortgage application was cancelled, denied or withdrawn since the refinance mortgage never closed.

  3. May borrowers pay down the mortgage through a principal curtailment in order to bring the unpaid principal balance (UPB) down to an eligible Relief Refinance Mortgage LTV ratio of 125 percent?

    Yes. Borrowers must use their own funds to bring the balance down to the eligible loan amount. The lender may not forgive principal to meet the eligible loan amount.

Indicator Scores

  1. Is the Relief Refinance Mortgage eligible if the borrower has a low credit score?

    The Relief Refinance Mortgage – Same Servicer does not have a minimum Indicator Score requirement unless the principal and interest payment on the Relief Refinance Mortgage increases by more than 20 percent in which case the minimum Indicator Score is 620.

    The Relief Refinance Mortgage – Open Access must be submitted to Loan Prospector and is eligible if it receives a risk class of Accept or Caution eligible for A-minus. If the mortgage receives a risk class of Caution and no A-minus eligible purchase eligibility message it must be manually underwritten and comply with the minimum Indicator Score requirements in Guide Chapter B24.3 (d)(iii).

  2. Is the Relief Refinance Mortgage eligible if the borrower does not have a usable credit score due to insufficient or inaccurate information?

    If the borrower does not have a usable credit score, the mortgage is eligible for the Relief Refinance Mortgage – Same Servicer provided the principal and interest payment on the Relief Refinance Mortgage does not increase by more than 20 percent. If the borrower does not have a usable credit score, the mortgage is not eligible for the Relief Refinance Mortgage – Open Access.

  3. If the principal and interest payment on the Relief Refinance Mortgage – Same Servicer increases by less than 20 percent and I don't have to requalify the borrower, do I still have to deliver an Indicator Score?

    Yes. Updated Indicator Scores are required for disclosure purposes, regardless of the new principal and interest payment amount.

Closing Costs

  1. Can the Relief Refinance Mortgage closing costs that exceed the lesser of $5,000 or 4 percent of the unpaid principal balance of the mortgage being refinanced be rolled into the existing secondary financing?

    No. Secondary financing may not increase as part of the Relief Refinance Mortgage.

  2. Do I have to document the source of closing costs paid by the borrower for Relief Refinance Mortgages?

    No. Closing costs paid by the borrower do not have to be verified for Relief Refinance Mortgages.

  3. When paying off the existing mortgage with proceeds from the Relief Refinance Mortgage, can the UPB be rounded up or down to the nearest thousand?

    No. The UPB may only be rounded up (e.g., a UPB of $214,425 rounds to $215,000, not $214,000). Any funds remaining as a result of the rounding must be applied as a principal curtailment and/or disbursed as cash to the borrower not to exceed $250.

  4. May a borrower elect a higher interest rate for the Relief Refinance Mortgage and apply the premium pricing toward closing costs, financing costs and prepaids/escrows?

    Yes. A borrower may elect a higher interest rate for the Relief Refinance Mortgage and apply the premium pricing toward closing costs, financing costs and prepaids/escrows.

Secondary Financing

  1. When refinancing a junior lien to the Relief Refinance Mortgage, does the HELOC limit have to be reduced if the full amount of the loan was not drawn?

    No. The UPB of the new junior lien cannot be more than the UPB, at the time of payoff, of the junior lien being refinanced, however, the limit is not required to be adjusted downward.

Principal And Interest Payment

  1. If the existing mortgage is an Initial InterestSM Mortgage or an ARM, what monthly mortgage payment must I use to determine the new principal and interest payment for the Relief Refinance Mortgage?

    You must always use the principal and interest payment that has been most frequently made by the borrower during the most recent 12 months, or since the note date of the mortgage being refinanced if the note date is less than 12 months prior to the application date of the Relief Refinance Mortgage.

  2. Is completing a loan application required if a borrower does not need to be requalified because the principal and interest payment on the Relief Refinance Mortgage – Same Servicer will increase by less than 20 percent?

    Yes. Borrowers that do not need to be requalified must still complete all sections of Form 65, Uniform Residential Loan Application, including all sections related to income and debt.

Loan Prospector®

Note: Relief Refinance Mortgages – Same Servicer may not be submitted to Loan Prospector.

  1. If the mortgage being refinanced is a government loan will Loan Prospector let me know that it is ineligible for the Relief Refinance Mortgage – Open Access?

    Loan Prospector will indicate if the mortgage is ineligible for the Relief Refinance – Open Access and will provide a feedback message stating that the loan type must be conventional. Review this and other feedback messages in the "Overview of Loan Prospector September 27 Release New and Updated Feedback Messages" At-a-Glance chart.

  2. If the mortgage being refinanced is ineligible for the Relief Refinance Mortgage – Open Access because it was delivered to Freddie Mac with a credit enhancement will Loan Prospector indicate what type of credit enhancement?

    No. Loan Prospector will provide the following feedback message – "Existing FM loan ineligible for Relief Refi – Open Access." Review this and other feedback messages in the "Overview of Loan Prospector September 27 Release New and Updated Feedback Messages" At-a-Glance chart.

  3. Will Loan Prospector automatically identify mortgages eligible for the Relief Refinance Mortgage – Open Access?

    No. You must select the Open Access Offering ID 310 from the drop-down menu on the "Mortgage Type and Loan Terms" screen if you are submitting the mortgage to Loan Prospector as a Relief Refinance Mortgage – Open Access.

  4. Are mortgages submitted through Loan Prospector that receive an Ineligible, Incomplete or Invalid eligible for the Relief Refinance Mortgage – Open Access?

    No. Relief Refinance Mortgages – Open Access that receive an evaluation of Invalid, Ineligible or Incomplete are ineligible for sale to Freddie Mac.

  5. If I don't have the mortgage file for the mortgage being refinanced, how do I find the Freddie Mac loan number and the mortgage insurance certificate number required for delivering Relief Refinance Mortgages – Open Access?

    This information will be included in the Loan Prospector Feedback Certificate if the certificate indicates that the mortgage is eligible for the Relief Refinance Mortgage – Open Access.

  6. Will Loan Prospector indicate if the Relief Refinance Mortgage – Open Access meets the three-month seasoning requirement?

    No. You must manually check that the mortgage meets the three-month seasoning requirement.

Mortgage Insurance

  1. Is mortgage insurance required on the Relief Refinance Mortgage?

    If the existing mortgage does not currently have mortgage insurance, then mortgage insurance is not required for the Relief Refinance Mortgage, even if the LTV ratio of the new mortgage exceeds 80 percent. Otherwise, mortgage insurance on the existing mortgage must be transferred to the Relief Refinance Mortgage with the existing or replacement certificate and the same percentage of coverage.

  2. If the existing mortgage did not require mortgage insurance because the LTV ratio was 80 percent or less, what level of mortgage insurance is needed if the LTV ratio on the Relief Refinance Mortgage exceeds 80 percent?

    If the existing mortgage did not require mortgage insurance, then mortgage insurance is not required on the Relief Refinance Mortgage, even if the LTV ratio on the new refinance mortgage exceeds 80 percent.

  3. Is mortgage insurance required if the existing mortgage was originated with mortgage insurance but no longer requires it due to natural amortization or principal reduction and the Relief Refinance Mortgage has an LTV ratio greater than 80 percent?

    No. If the existing mortgage no longer requires mortgage insurance coverage, then mortgage insurance is not required for the Relief Refinance Mortgage, even if the LTV ratio is greater than 80 percent.

  4. Are mortgages with lender-paid mortgage insurance eligible for the Relief Refinance Mortgage?

    Yes. The same percentage of lender-paid mortgage insurance coverage must be maintained for the Relief Refinance Mortgage. Please contact your mortgage insurance company to find out any specific underwriting and processing requirements it has for the transfer of mortgage insurance.

  5. How do I transfer mortgage insurance from the old mortgage to the new mortgage?

    Please contact your mortgage insurance company. Each Mortgage Insurer may have specific underwriting and processing requirements for the transfer of mortgage insurance.

  6. If the Mortgage Insurer will not transfer the mortgage insurance to the new mortgage, is the mortgage still eligible for sale to Freddie Mac?

    No. Existing mortgage insurance must be transferred to the Relief Refinance Mortgage with the same percentage of coverage. In addition, you must deliver the existing mortgage insurance certificate number or the replacement certificate number provided by the Mortgage Insurer and other required mortgage insurance data.

  7. If the Mortgage Insurer issues a replacement certificate number for the mortgage insurance being transferred to the Relief Refinance Mortgage where do I input this information?

    Input the replacement certificate number on Form 11, Mortgage Submission Schedule, or Form 13SF, Mortgage Submission Voucher, as applicable, in the MI certificate field.

Collateral Assessment

  1. Is obtaining an exterior-only appraisal acceptable for determining property value for Relief Refinance Mortgages?

    No. If you select the new appraisal option for the Relief Refinance Mortgage – Same Servicer it must be an appraisal with an interior and exterior inspection. Additionally, the Relief Refinance Mortgage – Open Access requires an appraisal with an interior and exterior inspection. The appraisal must meet the requirements in Guide Chapter 44.

  2. Should I keep the original appraisal in the existing mortgage file or the Relief Refinance Mortgage file if I am using the original appraisal for the Relief Refinance Mortgage – Same Servicer?

    You must keep the original appraisal in the Relief Refinance Mortgage – Same Servicer file.

Home Value Explorer®

Notes: 1) Use of HVE is not permitted for Relief Refinance Mortgages – Open Access; 2) Seller/Servicers must meet the terms and conditions defined in Guide Exhibit 32 when using Freddie Mac's HVE look-up tool.

  1. What is Home Value Explorer (HVE)?

    HVE is a statistically based automated valuation model that provides point value estimates for properties located in all 50 states and the District of Columbia. HVE estimates property value and provides a Confidence Score and Forecast Standard Deviation to indicate the accuracy of the estimated value.

  2. May I use HVE to estimate property values for the Relief Refinance Mortgage – Open Access?

    No. You may only use HVE to estimate property values for the Relief Refinance Mortgage – Same Servicer. You must obtain a new interior/exterior appraisal for the Relief Refinance Mortgage – Open Access.

  3. Can you explain the HVE data fields?

    HVE Point Value: provides the estimated value of the property.
    HVE Forecast Standard Deviation: provides the accuracy of the estimated value. HVE standard deviations between 0 and .20 are acceptable and correspond to high or medium Confidence Score levels. HVE standard deviations greater than .20 represent low confidence levels.
    HVE Value Date: is the date that the point value estimate for the property was obtained.

  4. How do I access HVE to obtain the value of the property for the Relief Refinance Mortgage – Same Servicer?

    If you are a Seller/Servicer and current Loan Prospector user, you may use your existing Loan Prospector user ID and password to access our free HVE look-up tool located on a separate tab on the secure pages of the Loan Prospector Web application. Alternatively, you can sign up to purchase HVE through one of Freddie Mac's approved distributors. Third-party originators may only have access to the HVE look-up tool through Freddie Mac-approved Seller/Servicers under the terms and conditions defined in Guide Exhibit 32.

  5. Do I need a new user ID and password to access the HVE look-up tool?

    No. You may use your existing Loan Prospector user ID and password to access the HVE look-up tool on the secure pages of the Loan Prospector Web application. You will need to enter your user ID and password twice: once to log in to Loan Prospector and a second time to access the HVE look-up tool.

  6. What information must be submitted to the HVE look-up tool to receive a point value estimate?

    You must submit the 9-digit Freddie Mac loan number to request a point value estimate.

  7. If the HVE point value estimate does not support the value needed for the Relief Refinance Mortgage – Same Servicer, may I obtain a new appraisal or use the appraisal from the existing mortgage?

    If the HVE point value estimate receives a medium or high Confidence Score, you should use that value unless you have a reasonable basis to believe that the property was not correctly evaluated by HVE. In this case, a new appraisal is recommended to confirm the value.

  8. Can I use the high or low HVE value estimates instead of the HVE point value estimate for the determining property value for the Relief Refinance Mortgage – Same Servicer?

    No. You must use the HVE point value estimate. Additionally, the HVE point value estimate must receive a medium or high Confidence Score to be eligible for use with the Relief Refinance Mortgage – Same Servicer

  9. What documentation is required when using HVE point value estimates for the Relief Refinance Mortgages – Same Servicer?

    You must retain a copy of the HVE point value estimate in the Relief Refinance Mortgage – Same Servicer file. If you receive HVE point value estimates for a group of mortgages in one report, you must make a copy of the applicable point value estimate, Forecast Standard Deviation, Confidence Score, and date of the estimate for each mortgage and retain it in the appropriate mortgage file.

  10. May I use HVE to estimate property values for Relief Refinance Mortgages – Same Servicer with LTV ratios greater than 105 percent?

    Yes. HVE point value estimates may be used to estimate property values for all Relief Refinance Mortgages – Same Servicer secured by 1-unit primary residences.

  11. How do I access the HVE look-up tool if I am not a Loan Prospector user?

    You may sign up to become a Loan Prospector user. Alternatively, you can sign up to purchase HVE through one of Freddie Mac's approved distributors listed on FreddieMac.com.

  12. Does the HVE look-up tool support batch requests?

    Yes. You may obtain HVE point value estimates for up to 500 loans in a single request. You must submit batch requests in an .XML file format, along with a valid e-mail address. Batch requests are processed overnight.

  13. How will I be notified when my HVE batch request is ready?

    Batch requests are processed overnight and are usually available within 24 hours. An e-mail with the results is sent to the e-mail address you provide with your batch request.

Delivery Fee Cap

  1. How does Freddie Mac apply the 200 basis point Relief Refinance Mortgage delivery fee cap?

    Your monthly invoice will include all applicable delivery fees and a deduction for delivery fees that exceed 200 basis points under the fee named Relief Refinance Cap Deduction. Mortgages sold for cash will see the net delivery fees and credits reflected in the selling system's Net Price functionality.

  2. Are all delivery fees included in the 200 basis point delivery fee cap?

    Yes. Total delivery fees will not exceed 200 basis points for all Relief Refinance Mortgages.

  3. Is the Market Condition delivery fee included in the 200 basis point delivery fee cap?

    Yes. The Market Condition delivery fee is included in the 200 basis point Relief Refinance Mortgage delivery fee cap.

  4. Is the cash adjustor included in the 200 basis point delivery fee cap?

    No. The cash adjustor is not a delivery fee so it is not included in the 200 basis point delivery fee cap and must be accounted for separately.

Reduced Term Incentive

Note: The reduced term incentive only applies to eligible Relief Refinance Mortgages with LTV ratios greater than 105 percent.

  1. How is the reduced term incentive for Relief Refinance Mortgages with LTV ratios greater than 105 percent applied?

    The reduced term incentive is applied by reducing the Relief Refinance Mortgage delivery fee cap to the amount specified in Guide Exhibit 19, which is currently 150 basis points. Your monthly invoice will reflect the reduced term incentive as a deduction under a separate line item called Reduced Term Incentive. Mortgages sold for cash will see the net delivery fees and credits, including the reduced term incentive, reflected in the selling system's Net Price functionality.

  2. Will the reduced term incentive apply if I refinance a borrower from a 40-year fixed-rate mortgage into a 30-year fixed-rate mortgage?

    No. To qualify for the reduced term incentive, the term of the mortgage being refinanced must be 30-years or greater and the term of the Relief Refinance Mortgage must be greater than 15 years and less than or equal to 25 years.

Delivery and Execution Requirements

  1. Are there any special delivery requirements for Relief Refinance Mortgages – Same Servicer?

    When delivering Relief Refinance Mortgages you must:
    • Deliver the exact 9-digit Freddie Mac loan number for the mortgage being refinanced
    • Complete all required mortgage insurance fields
    • Deliver all required special characteristic codes (SCCs)
    For additional details on best practices for delivering Relief Refinance Mortgages – Same Servicer to Freddie Mac, review our recent Single-Family News article.

  2. How do I deliver Relief Refinance Mortgages with LTV ratios greater than 105 percent under the Guarantor execution?

    These mortgages must be pooled separately and you must select specific security products in the selling system as follows: from the "Create Guarantor Contract" screen choose the following from the "Security Product" drop-down menu: 30 (20, 15) year Gold PC High LTV >105 - <= 125%. See Guide Exhibit 17S for additional information.

Cash Contracts

  1. Can I commingle Relief Refinance Mortgages that have LTV ratios greater than 105 percent with Relief Refinance Mortgages that have LTV ratios less than or equal to 105 percent in the same cash commitment?

    No. You must take out a separate cash commitment for Relief Refinance Mortgages with LTV ratios greater than 105 percent.

  2. If I have to enter "Over105" in the "Contract Name" field when taking out cash commitments for Relief Refinance Mortgages with LTV ratios greater than 105 percent does that mean I can no longer use that field for internal naming conventions?

    No. You may still continue to use this field as you do today, but you must also include the "Over105" in the "Contract Name" field. For example, you may enter "Over105Johnson#12345," or "Loan131313131Over105."

  3. Does the "O" in "Over105" have to be capitalized?

    No. However, you must enter this information in the "Contact Name" field with no space between the "Over" and the "105."

  4. If I took out a contract for Relief Refinance Mortgages with LTV ratios greater than 105 percent, and the mortgages end up having LTV ratios less than 105 percent when I close them, do I need to pair out of the contract?

    Yes. You will need to pair out of the contract or substitute the mortgage with another loan.

Cash Adjustor

Note: The cash adjustor only applies to Relief Refinance Mortgages with LTV ratios greater than 105 percent that are sold to Freddie Mac for cash.

  1. Where do I find the cash adjustor value required for Relief Refinance Mortgages with LTV ratios greater than 105 percent that are sold to Freddie Mac for cash?

    You must obtain the current cash adjustor value by calling 800-FREDDIE, entering your Seller/Servicer number, selecting "option one" for system status and then "option three" for the cash adjustor value.

  2. Is the cash adjustor subject to change?

    Yes. The cash adjustor may change from time to time at Freddie Mac's discretion.

  3. When is the cash adjustor for Relief Refinance Mortgages with LTV ratios greater than 105 percent applied?

    The cash adjustor amount for a particular mortgage is determined as of the commitment "accept" date and Freddie Mac will net that amount against the cash proceeds paid for the mortgage. It is up to the Seller to factor in the cash adjustor amount and any applicable delivery fees at the time of commitment. At delivery, your net price will reflect all of the applicable delivery fees and the cash adjustor. The cash adjustor is not included in the delivery fee cap for Relief Refinance Mortgages and must be accounted for separately.

© 2009 Freddie Mac

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