Erie County Sues Freddie & Fannie & MERS for Robosigning & Attached is Service Release Program of...

7/28/2019 Erie County Sues Freddie & Fannie & MERS for Robosigning & Attached is Service Release Program of Freddie! 4 7

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~Freddie.0MacWemake home possloe"

~~~MAKINGHOMEAFFORDABLERel ief Refi nan ce Mortgages - Same Servicer

> Borrower Profi le 1

An expandedL TVITL TV/HTL TVref in an ce s ol ut io n f oryo ur c usto mers ont he m or tg ag es y ouservice

The Freddie Mac Relief Refinance MortgageSM - Same Servicer helpsborrowers who are making tirely mortgage payments but have beenunable to refinance due to declining property values. A portion of thisoffering, mortgages with LTV ratios greater than 80 percent, representsour business imPlementation

lof the Home Affordable Refinance

program (HARP).In addition to simplified appraisal and borrower eligibility requirements,HARP mortgages have additional flexibilities, including no maximumLTVITL TV/HTL TV ratios for fixed rate mortgages, relief from certainrepresentations and warranties, and acceptable borrower solicitationpractices. With these additional opportunities you can assist even moreof your borrowers to refinance into mortgages that better position themfor long-term homeownership success.

The mortgage being refinanced must be servicedbythe Seller, or an affiliate of the Seller. The newmortgage must be originated by the Seller or anaffiliate of the Seller.

No maximum LTVITL TV/HTL TV ratio requirementfor fixed-rate mortgages. ARMs have a maximumLTV ratio of 105 percent.

Relief from certain Seller representation andwarranties on the mortgage being refinanced.

Simplified borrower eligibility requirements;reduced income and asset documentationrequirements.

Use of Home Value Explorer" to determineproperty value for certain mortgages.

Allows omission of a borrower for any reason,subject to conditions.

Relief from standard mortgage insurancerequirements.

Borrower solicitation permitted for loans with LTVratios greater than 80 percent.

Experienced declining property values or couldbenefit from refinancing into mortgages withterms that better position the borrower for long-term homeownership.

Have no more than one 30-day delinquency inthe past 12 months on the mortgage beingrefinanced provided there are no delinquencieswithin the most recent six months.

Can provide a verifiable source of income for atleast one borrower or have reserves equal to atleast 12months payment of principal, interesttaxes and insurance (PITI).

Fredd ieMac .comFreddie Mac is proud to playa leading role in theMaking Home Affordable Program.

PublicationNumber804J anuary2013 T h e info rma tio n in th is d oc ume nt is n ot a re pla ceme nt orsubstitute for information found in the SingleFamily Seller!Servicer Guide andlor the terms of your Master Agreementandlor Master Commitment.


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:General EligibilityRequirements

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Mortgage PaymentHistoryRepresentation andWarranties on theMortgage BeingRefinanced

Borrower Benefit

, . . Detailed requirements for Relief Refinance Mortgages - Same Servicer can be found in Single-Family Seller/ServicerGuide (Guide) Chapter A24, Relief Refinance Mortgages - Same Servicer The mortgage being refinanced must:o Be a first-lien, conventional mortgage currently owned or securitized by Freddie Mac.o Have a Freddie Mac settlement date on or before May 31, 2009.o Be serviced by the Seller or an affiliate of the Seller.

The originator of the new refinance mortgage must have the mortgage file for the mortgage being refinanced and mustdeliver the 9-digit Freddie Mac loan number for the mortqaqe being refinanced. Mortgages being refinanced that have mortgage insurance, recourse, indemnification or other negotiated creditenhancement are eligible for refinancing as a Relief Refinance Mortgage - Same Servicer. Refer to Guide SectionA24.3(k) for additional requirements for refinancing rnortqaqes that have recourse or indemnification.

No delinquency in the most recent six months I Nomore than one 30-day delinquency in the past 12 m~nths The Seller is not required to represent and warrant that ~hemortgage being refinanced met the eligibility requirementsin its Purchase Documents related to :

o Borrower creditworthiness (credit reputation and capacity) and any other underwriting requirements.o The value, condition, and marketability of the mortgaged premises.o See Guide Section A24.3(a) for representations and warranties requirements related to fraud.

The Seller is required to represent and warrant that the mortgage being refinanced met all other Freddie Mac eligibilityrequirements in its Purchase Documents, including, butlnot limited to, requirements related to anti-predatory lendingand project eligibility for mortqaqes secured by condominium units, or if permitted by the Seller's PurchaseDocuments, Cooperative Share Mortgages. " I:

Eligible MortgageProducts

: IV

Eligible Property Types

The Relief Refinance Mortgage must result inat least ~ 'ofthe following: Reduction in the interest rate of the first-lien mortgage. Replacement of an ARM, lnltial lnteresl" Mortgage (or any mortgage with an interest-only period), or a balloon/resetmortgage with a fixed-rate, fully amortizing mortgage. Reduction in the amortization term of the first-lien mortgage. Reduction in the monthly principal and interest (P&I) payment of the first-lien mortgage. Originated by the Seller or an affiliate of the Seller. Conventional 15-, 20- or 30-year fixed-rate, fully amortizinq mortgages. Conventional 5/1, 7/1 or 10/1 fully amortizing adjustable-rate mortgages (ARMs) The Relief Refinance Mortgage - Same Servicer may bea super conforming mortgage. If the mortgage being refinanced is a fixed-rate mortgage, the new Relief Refinance Mortgage - Same Servicer maynot be an ARM.A Relief Refinance Mortgage - Same Servicer must: Have Application Received Dates on or after December 1, 2011, and on or before December 31, 2013. Have Freddie Mac settlement dates no more than 12 months after the note date and on or before September 30,2014. 1- to 4-unit primary residences 'I Second homes 1- to 4-unit investment properties The mortgage being refinanced and the Relief Refinance Mortgage do not have to represent the same occupancy

Refinance Proceeds The refinance proceeds must be used only to: J .o Payoff the first mortgage (amount includes the UP~ and accrued interest through the payoff date).o Pay related closing costs, financing costs and prepaids/escrows, not to exceed the lesser offour percent of thecurrent UPS of the mortgage being refinanced or $5,000.o Disburse to the borrower (or any other payee), not t[) exceed $250.

In the event that there are remaining proceeds from the Relief Refinance Mortgage - Same Servicer after the proceedsare applied as described above:o The mortgage amount may be reduced, oro The excess amount must be applied as a principal curtailment to the new refinance mortgage at closing and musbe clearly reflected on the HUD-1 form or other equivalent closing statement.o Under no circumstances may cash disbursed to the borrower (or any other payee) exceed the maximum permittedamount.

MaximumLTVITL TV/HTL TV For adjustable-rate mortgages, the maximum LTV ratio is 105 percent. For fixed-rate mortgages, there isno maximum LTV ratio. There are no maximum TLTV and HTLTV ratios.


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Mortgage Insurance For an LTV ratio greater than 80 percent: Ifthe mortgage being refinanced has mortgage insurance coverage. then the same mortgage insurance coveragepercentage must be maintained for the Relief Refinance Mortgage - Same Servicer on the entire unpaid principalbalance. The Seller must comply with any requirements established byapplicable mortgage insurer to transfer andmaintain existing mortgage insurance coverage. Ifthe mortgage being refinanced does not have mortga~e insurance. then no mortgage insurance coverage is requiredfor the Relief Refinance Mortgage - Same Servicer.

Lender Contributions Effective for mortgages with Application Received Dates 0 1 1 or after April 30. 2013. the follOwing is guidance for the use olender contributions as outlined in Guide Section A24.3(m). A lender may provide the borrower with a cash or a cash-like contribution that is not reflected on the HUD-1 form oran equivalent settlement statement. provided it does ~ot exceed $500 and repayment is not required.The contributionis not considered cash out to the borrower and does not have to be included in the calculation of mortgage proceeds. A lender may provide a contribution towards the payoff of the mortgage being refinanced. provided that itdoes notexceed $2.000 and repayment is not required. The contribution must be reflected on the settlement statement. Thecontribution is not considered cash out to the borrower provided it does not result in cash disbursed to the borrowerexceeding $250. As required under the Guide for all mortgages sold to Freddie Mac. the Seller must comply with the requirements ofall applicable laws in structuring and providing the coritributions above.

UnderwritingRequirements The Seller must manually underwrite the Relief Refinanc:e Mortg

Collateral Assessment The Seller may use HVE or a new appraisal to determine property value. Refer to Guide Section A24.3(d) for completerequirements. If the requirements of Guide Section A24.3(d). as applicable. are met. the Seller is relieved of representations andwarranties for the value. condition and marketability of he mortgaged premises provided that. as of the settlementdate. the Seller is not aware of any circumstances or conditions that would adversely affect the value. condition ormarketability of the mortgaged premises. If an appraisal is obtained. the Seller is not responsible for the representation and warranties regarding the value.condition. and marketability of the mortgaged premises.

Freddie Mac will accept appraisal reports with a UAD property condition rating of C5or C6 and/or a UAD quality ratingof Q6 completed on an "as-is" basis; the appraisal does not have to be completed "subject to" substantial or significantneeded repairs being completed.

The Seller is not responsible for the completeness and accuracy of the appraiser's description of the mortgagedpremises and the accuracy of. and support for. the appraiser'S opinion of market value of the mortgaged premises. The date of the HVE estimate (HVE Value Date) must e no more than 120 days prior to the note date. Sellers are not required to obtain a new appraisal or a ew HVE point value estimate if the Relief Refinance Mortgageis delivered more than 120 days from the note date.

Secondary Financing Existing junior liens may be refinanced simultaneously with the first mortgage provided the junior lien is beingrefinanced for one of the following purposes:o A reduction inthe interest rate of the junior lien.o To replace an ARM. an interest-only junior lien. or a junior lien with a balloon or call option with a fixed-rate. fully

amortizing junior lien.o A reduction in the amortization term of the junior lien.o A reduction in the monthly payment of the junior lien.

The unpaid principal balance of the new junior lien cannot be more than the unpaid principal balance. at the time ofpayoff. of the junior lien being refinanced. Ifthe junior lien being refinanced is a fixed-rate junior lien. the new junior lien cannot be an ARM. An existing junior lien must be subordinate to the Relief Refinance Mortgage - Same Servicer. regardless of whetheris refinanced simultaneously with the first-lien mortqaqe,o An increase in the current unpaid principal amount of any existing junior lien is permitted for reasons not related tthe Relief Refinance Mortgage transaction.o No new secondary financing is permitted.


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.I~Allowable RefinancePractices For Relief Refinance Mortgages - Same Servicer with l.TV ratios greater than 80 percent Sellers may contact eligible borrowers with mortgages owned or securitized by Freddie Mac to inform them of theenhancements to HARP.

Solicitations must be applied equally across the servi(~ng portfolios of Freddie Mac and Fannie Mae. Detailed borrower solicitation rules are outlined in Guide Sections 8.10 and A24.1(b).I

For all other Relief Refinance lIIIortgages Sellers must comply with the broad-based refinance practices described in Guide Section 8.10 and may notintentionally target Freddie Mac-owned mortgages in advertising or implementing refinance terms.

"Delivery Requirements See Guide Section A24.4(d) for special delivery instructions for Relief Refinance Mortgages - Same Servicer. Sellersmust deliver the following ULDD Data Points:

o Refinance Program ldentitier: "Relief Refinance Same Servicer"o Related Loan Investor Type: "FRE"o Related Investor Loan Identifier:

If applicable, Sellers must deliver the following ULDD Dllta Points:o Investor Feature Identffier: "H03" (Indicating an H '1 E point value estimate is used to determine value)o MI Certificate Identifier (Certificate number of existing mortgage insurance policy transferred to the ReliefRefinance Mortgage - Same Servicer or the replacement certificate number)o MI Coverage Percent (If the mortgage being refinanced has mortgage insurance enter the same percentage ofloss coverage.) If the Relief Refinance Mortgage - Same Servicer is delivered without mortgage insurance, Sellers must deliver thefollowing ULDD Data Point:o Primary MI Absence Reason Type/Primary MI Absence Reason Type Other Description: "Other-No MI Based onMortgage Being Refinanced"

Delivery Fees Postsettlement delivery fees from Guide Exhibit 19 apply. For mortgages with LTV ratios less than or equal to 80 percent, the total of all delivery fees is capped at 200 basispoints.

For mortgages with LTV ratios greater than 80 percent, the following delivery caps will be applied:o Zero basis points for non-investment property fixed-rate mortgages with amortization terms of less than or equal to20 years.o 75 basis points for non-investment property fixed-rate mortgages with amortization terms of greater than 20 years.a 75 basis points for non-investment property rnortqaqes that are ARMs.o 200 basis points for investment properties.

Eligible Executions All Relief Refinance Mortgages - Same Servicer may be sold to Freddie Mac through the following executions:o Fixed-rate Cash Servicing retained Concurrent transfer of servicing

Servicing released sales process for mortgages with LTV ratios less than or equal to 105 percent LTVo Fixed-rate Guarantor Relief Refinance Mortgages - Same Servicer with LTV ratios less than or equal to 105 percent may also be sold toFreddie Mac through the following executions:a WAC ARM Casho WAC ARM Guarantoro MultiLender Swap

Fixed-rate cash contracts for Relief Refinance Mortgages with LTV ratios greater than 105 percent may only includeRelief Refinance Mortgages at these higher LTV ratios. Sellers must take out separate fixed-rate contracts based onthe specific LTV range for the contract.o To identify these fixed-rate cash contracts, select the appropriate range using the "LTV Range for the Contract"field located on the "Take Out Cash Contract" sCffT9nin the selling system. Select:

">105% - 115%" for LTV ratios greater than 115 perce t.o A cash adjustor applies to all fixed-rate Relief Refinance Mortgages with LTV ratios greater than 125 percent thatare sold to Freddie Mac for cash. The current cash adjustor for Relief Refinance Mortgages is zero basis points.The cash adjustor will be reflected inthe cash pricing shown in the selling system once the Seller allocatesmortgages to the contract.o To obtain the cash adjustor value prior to taking out a commitment in the selling system, you may call 800-FREDDIE, enter your Seller/Servicer number and select "delivery."


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S ec u ri t ies a nd Po o li n gRequirements All current pooling requirements apply including the specific requirements for super conforming mortgages. Fixed-rate and adjustable-rate Relief Refinance Mortgages with LTV ratios less than or equal to 105 percent may bepooled with other mortgages without additional pooling nequirements. Fixed-rate Relief Refinance Mortgages with LTV ratios greater than 105 percent must be pooled separately in PCpools comprised entirely of Relief Refinance Mortgages with LTV ratios greater than 105 percent. These PC pools arenot eligible for sale inthe TBA market. Fixed-rate Relief Refinance Mortgages with LTV ratios greater than 125 percent must not be pooled together withmortgages having LTV ratios less than 125 percent. Instead, the mortgages must be pooled in PC pools with a prefixdesignation specifically for Relief Refinance Mortgages having LTV ratios greater than 125 percent. The PC pool mayinclude both Relief Refinance Mortgages - Same Servicer and Relief Refinance Mortgages - Open Access.See Guide Section A24.4 (h) for additional pooling requirements.

Learn more about Rel ief Ref inance Mortgages - Same Servicer Review the information found in Guide Chapter A24 of the Single-Family SelferlSeNicer Guide Call BOO-FREDDIE Visit FreddieMac.com

Freddie Mac is proud to playa leading role in the ~aking Home Affordable Program.

Erie County Sues Freddie & Fannie & MERS for Robosigning & Attached is Service Release Program of...

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