Important Reminders Regarding Loan Prospector Mortgages and the Life of Representation and Warranty Relief
[July 5, 2005]
If you are an approved Freddie Mac Seller/Servicer and sell mortgages to Freddie
Mac, it's important that you keep in mind recent changes we made to our Freddie
Mac's Single-Family Seller/Servicer Guide (Guide). These changes emphasize
the specific criteria that mortgages must meet in order to be Loan Prospector
mortgages, as well as the specific criteria that you and the mortgage must meet
in order for you to receive relief from representations and warranties for creditworthiness
and, if applicable, value, condition and marketability of the Mortgaged Premises.
We've included this information to help you clearly identify when a mortgage
that you've submitted to Loan Prospector is eligible for relief from representations
and warranties. Our updated information includes:
A Loan Prospector mortgage must comply with all of the requirements
of Section 2.2.1 of the Guide. (See also Chapters 37 and 44.)
You should also review and be familiar with the updated definitions of
a Loan Prospector and Non-Loan Prospector Mortgage found in the Guide Glossary.
We have added a definition to the Guide Glossary for Last Feedback Certificate.
The Last Feedback Certificate returned by Loan Prospector before closing
of the mortgage (i.e., the Note Date or the MOD/COV Date, as applicable)
must accurately represent the terms of the mortgage delivered to Freddie
Mac.
Remember that Loan Prospector assumes that the last information submitted
to Loan Prospector, before closing of the mortgage, is the same as the information
for the Mortgage that is delivered to Freddie Mac. If you resubmit the loan
to Loan Prospector several times, be sure that final submission prior to closing
is accurate and is captured in the Last Feedback Certificate and accurately
represent the terms of the mortgage delivered to Freddie Mac.
