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Freddie Mac Guide Bulletin 2014-2 Home Possible Delivery Fees

On February 14, Freddie Mac released an update titled Changes to Home Possible Delivery Fees, Form 16SF, and Other Updates Announced in Guide Bulletin 2014-2.

Changes to Home Possible Delivery Fees, Form 16SF, and Other Updates Announced in Guide Bulletin 2014-2

In response to your feedback and the increased interest in the purchase mortgage market, Freddie Mac Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-2 announced we are reducing the Home Possible® Mortgages postsettlement delivery fee rate for purchase transactions.

In addition, the Bulletin also announced:

  • Updated Seller/Servicer Form 16SF, Annual Eligibility Certification Report.
  • Updated reserves requirements.
  • Updated property and appraisal requirements.
  • Revised Loan Prospector® resubmission requirements.
  • Addition of Uniform Loan Delivery Dataset (ULDD) Phase 2 Data Point requirements and clarifications on existing ULDD Data Points.
  • Revised Servicing requirements for condominium, HOA, and PUD regular assessment reimbursements.

Sell & Deliver and Servicing

  • Made Form 16SF easier to use. Form 16SF will provide clearer language, more options for certain questions, and the ability for multiple users to access the form. We encourage you to review the Bulletin for information on how these updates could affect your current drafts of the form. As a reminder, Form 16SF must be completed within 90 days after the end of your fiscal year. We anticipate the form will be updated by the end of February and will notify you when that happens.

Originate & Underwrite

  • Updated reserves requirements.
    • We will base reserves calculations on a property’s full monthly payment amount – not only principal, interest, taxes, and insurance – to help ensure borrowers have adequate reserves.
    • We removed the requirement that a borrower must have an additional six months of reserves when a borrower converts a 2- to 4-unit primary residence to an investment property, and rental income from units not previously occupied by the borrower is used to qualify.
    • We removed the requirement that the appraisal must be dated no more than 60 days prior to the note date when used to document the value of a primary residence pending sale or being converted to a second home or an investment property for the purposes of establishing a minimum required reserves. The property valuation must meet Freddie Mac’s existing requirements in Guide Chapter 44, including the age of valuation requirements.

For ease of reference, our minimum reserves requirements have been consolidated into tables in one section of the Guide, with the exception of Home Possible Mortgages and Relief Refinance MortgagesSM – Same Servicer, which will remain in their respective Guide chapters.

These requirements are effective for mortgages with settlement dates on or after June 1, 2014, but Sellers are encouraged to implement them as soon as possible.

  • Updated property and appraisal requirements. We updated our property eligibility and appraisal requirements, and simplified certain sections of Chapter 44, Property and Appraisal Requirements. We also are updating the Guide to align with current Loan Prospector offerings.

Sell & Deliver

  • Reduced delivery fee rate for Home Possible Mortgages. To help make it easier for first-time buyers to afford a home, the delivery fee rate for Home Possible purchase transactions has been reduced to 75 basis points. The reduction applies to all purchase loans eligible under Home Possible.
  • Delayed implementation of postsettlement delivery fee change. As announced in our Single-Family Update email on January 8, 2014, the Federal Housing Finance Agency (FHFA) directed Freddie Mac to delay implementation of the:
    • Changes to the market condition delivery fee.
    • Increase in indicator score/loan-to-value delivery fee rates.
    • Increase in guarantee fee of 10 basis points for all single-family mortgages.
  • Incorporated new ULDD Phase 2 data points. To make sure you have time to become familiar with the new requirements before the May 19 to August 25, 2014, transition period, we have incorporated the new ULDD data points and clarified existing ULDD data points in the Guide.
  • Extended the time to resubmit mortgages to Loan Prospector after the note date. You will have up to 120 days after the “Loan Prospector Assessment Expiration Date” that is in effect as of the note date to resubmit a mortgage to Loan Prospector.

Servicing

  • Revised reimbursement policy for condominium, HOA, and PUD regular assessments.

For mortgages originated on or after February 14, 2014, Freddie Mac will reimburse up to a total of six months for condominium, homeowners association (HOA), and planned unit development (PUD) regular assessments except in the following super lien states:

  • Florida – Servicers will be reimbursed up to a total of 12 months.
  • Connecticut – Servicers will be reimbursed up to a total of nine months.

For More Information

  • Review Guide Bulletin 2014-2 [PDF] for complete details and effective dates on these and other Guide revisions and updates.
  • Contact your Freddie Mac representative.

Please click here to view the online update.

Please click here to view ULDD Phase 2 Tips and Selling System Updates.

 

About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties