4302.2: Requirements for Freddie Mac Relief Refinance MortgagesSM – Same Servicer (11/19/18)
- Marsha Freeman
- Kacey Olson
© Freddie Mac Single-Family Seller Servicer Guide
The requirements below are effective for Relief Refinance MortgagesSM – Same Servicer with Application Received Dates on or after November 19, 2012.
- Have a Note Date on or before May 31, 2009
- Be serviced by the Seller, or an Affiliate of the Seller. The Mortgage originator of the Relief Refinance Mortgage – Same Servicer must have the Mortgage file of the Mortgage being refinanced.
- Be a First Lien, conventional Mortgage currently owned by Freddie Mac, in whole or in part, or securitized by Freddie Mac
- Have met Freddie Mac's eligibility requirements as stated in the Seller's Purchase Documents on the Note Date of the Mortgage being refinanced
- Be seasoned for at least three months (that is, the Note Date of the Mortgage being refinanced must be at least three months prior to the Note Date of the Relief Refinance Mortgage – Same Servicer)
- Have a Mortgage payment history that indicates the following:
- The Mortgage has not been 30 or more days delinquent in the most recent six months; and
- The Mortgage has not been 30 or more days delinquent more than once in the most recent 12 months or if the Mortgage is seasoned for less than 12 months, since the Mortgage Note Date
If the Mortgage being refinanced has:
- Mortgage insurance, it is eligible for refinancing under the provisions of this chapter; refer to Section 4302.2(h)
- Recourse or indemnification, it is eligible for refinancing under the provisions of this chapter; refer to Section 4302.2(j)
- Mortgage pool insurance or another negotiated credit enhancement, it is eligible for refinancing provided the loan-to-value (LTV) ratio of the Relief Refinance Mortgage – Same Servicer is less than or equal to 80%. For Relief Refinance Mortgages – Same Servicer with LTV ratios greater than 80%, the Seller must contact its Freddie Mac representative for additional instructions for eligibility and delivery of these Mortgages
Mortgages sold to Freddie Mac through the bulk sales unit, including but not limited to Alternative A Mortgages, are eligible for refinancing under the provisions of this chapter unless Freddie Mac notifies the Seller, in writing, that they are ineligible.
If the Mortgage being refinanced was considered for and/or received a Freddie Mac modification (Home Affordable Modification Program (HAMP®) or non-HAMP), the Mortgage is eligible to be refinanced as a Relief Refinance Mortgage – Same Servicer, provided the requirements of this chapter are met, including the Mortgage payment history requirements above. The current contractually-obligated payment terms under the Note, including the most recent modification of the Note, if any, must be used for the purpose of determining whether the Relief Refinance Mortgage – Same Servicer meets the Borrower benefit requirements below.
The Seller is not required to represent and warrant that the Mortgage being refinanced met the Freddie Mac eligibility requirements in its Purchase Documents related to the following:
- Borrower creditworthiness (credit reputation and capacity) and any other underwriting requirements
- Value, condition and marketability of the Mortgaged Premises
Additionally, in lieu of representing and warranting that the Mortgage being refinanced met Freddie Mac eligibility requirements related to fraud, the Seller represents and warrants that the Mortgage being refinanced by a Relief Refinance Mortgage – Same Servicer was not originated or sold pursuant to any scheme or pattern of fraud that involved two or more Mortgages and two or more perpetrators acting in common effort with respect to such Mortgages. For purposes of the foregoing, "fraud" is defined as a misstatement, misrepresentation or omission that cannot be corrected and that was relied upon by Freddie Mac to purchase the Mortgage being refinanced. For purposes of the foregoing, a "perpetrator" is an individual or entity involved in the origination or sale of the Mortgage or the related real estate transaction including, but not limited to, a mortgage broker, loan officer, appraiser, appraisal company, title or closing agent, or property seller, or the Borrower(s) acting in conjunction with one of the former.
The Seller is required to represent and warrant that the Mortgage being refinanced met all other Freddie Mac eligibility requirements in its Purchase Documents including, but not limited to, requirements related to anti-predatory lending and Project eligibility for Mortgages secured by Condominium Units, or, if permitted by the Seller's Purchase Documents, Cooperative Share Loans.
Freddie Mac may perform a postfunding quality control review of the Mortgage file for the Mortgage being refinanced, and reserves its rights to exercise any of its remedies, including the right to require repurchase of the Relief Refinance Mortgage – Same Servicer, in the event that the Mortgage being refinanced failed to meet Freddie Mac's eligibility requirements as stated in the Seller's Purchase Documents, except as specifically stated otherwise above.
- A conventional 15-, 20- or 30-year fixed-rate, fully amortizing Mortgage
- A conventional 5/5, 5/1, 7/1 or 10/1 fully amortizing ARM
The maximum LTV ratio of Relief Refinance Mortgages – Same Servicer must comply with the requirements in subparagraph (f) below.
The Relief Refinance Mortgage – Same Servicer may be a super conforming Mortgage.
The Seller is responsible for determining whether the proposed refinance of a Mortgage secured by the Borrower's homestead in the State of Texas is a Mortgage that must be originated pursuant to Section 50(a)(6) of Article XVI of the Texas Constitution. Refer to Section 4301.7 for additional information regarding Texas Equity Section 50(a)(6) Mortgages.
The Seller must manually underwrite the Relief Refinance Mortgage – Same Servicer in accordance with the requirements of this chapter and determine that the Mortgage is acceptable for sale to Freddie Mac. Any previous representation and warranty relief relating to submission of the Mortgage being refinanced to Loan Product Advisor® or to any other automated underwriting system remains for the Mortgage being refinanced but is of no further force and effect for the Relief Refinance Mortgage – Same Servicer.
- A reduction in the interest rate of the First Lien Mortgage
- To replace an ARM, Initial Interest® Mortgage or any Mortgage with an interest-only period, or a Balloon/Reset Mortgage with a fixed-rate, fully amortizing Mortgage
- A reduction in the amortization term of the First Lien Mortgage
- A reduction in the monthly principal and interest payment of the First Lien Mortgage
A fixed-rate Mortgage may be refinanced into an ARM only when it results in a reduction in the monthly principal and interest payment of the First Lien Mortgage. However, because an ARM is a riskier product than a fixed-rate Mortgage, Sellers should urge Borrowers to refinance into fixed-rate Mortgages whenever possible.
- Pay off the first Mortgage (amount including only the UPB and interest accrued through the date the Mortgage being refinanced is paid off)
- Pay related Closing Costs, not to exceed $5,000
- Disburse cash to the Borrower not to exceed $250
In the event there are remaining proceeds from the Relief Refinance Mortgage – Same Servicer after the proceeds are applied as described above:
- The Mortgage amount must be reduced, or
- The excess amount must be applied as a principal curtailment to the Relief Refinance Mortgage – Same Servicer at closing and must be clearly reflected on the Settlement/Closing Disclosure Statement
Under no circumstances may cash disbursed to the Borrower exceed $250.
The proceeds may not be used to pay off or pay down any junior liens.
- Must be subordinate to the Relief Refinance Mortgage – Same Servicer and must meet requirements for secondary financing set forth in Chapter 4204. An increase in the current unpaid principal amount of any junior lien is prohibited to curtail the Relief Refinance Mortgage – Same Servicer or to pay related Closing Costs and no new secondary financing is permitted.
Existing secondary financing may be an Affordable Second® meeting the requirements of the Seller's Purchase Documents. The Affordable Second must be subordinate to the Relief Refinance Mortgage – Same Servicer. Refer to Section 4302.3 for special delivery requirements for Relief Refinance Mortgages – Same Servicer with an Affordable Second.
- May be refinanced simultaneously with the existing First Lien if the junior lien is being refinanced for one of the following purposes:
- A reduction in the interest rate of the junior lien
- 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
- A reduction in the amortization term of the junior lien
- A reduction in the monthly payment of the junior lien
The UPB of the new junior lien may not be more than the UPB, at the time of payoff, of the junior lien being refinanced.
If the junior lien being refinanced is a fixed-rate junior lien, the new junior lien may not be an ARM.
- The Mortgage file contains evidence that the remaining Borrower has been making the Mortgage payments, including the payments for any secondary financing, for the most recent 12-month period; or
- The remaining Borrower(s) qualifies for the Mortgage based on the requirements for Mortgages with a principal and interest payment increase in Section 4302.2(g); or
- In the case of death, the Seller obtains and retains in the Mortgage file documentation of the Borrower's death
In all cases, at least one Borrower(s) from the Mortgage being refinanced must be retained.
- ARMs having LTV ratios exceeding 105%
- Cash-out refinance Mortgages
- Special purpose cash-out refinance Mortgages
- Mortgages with a potential for negative amortization or an Option ARM
- Mortgages originated under Chapter 4602 and any other Mortgage that converts interim construction financing to permanent financing
- Mortgages subject to a temporary subsidy buydown
- FHA Mortgages
- VA Mortgages
- Section 502 GRH Mortgages
- Section 184 Native American Mortgages
- Home Possible® Mortgages, and any affordable Mortgage, including Mortgages originated under the Seller's proprietary affordable program
- Affordable Merit Rate® Mortgages
- Freddie Mac Relief Refinance Mortgages – Open Access
- Mortgages using an Automated Valuation Model (AVM) other than HVE® to determine property value
- Seasoned Mortgages
- Mortgages that exceed the thresholds under the Home Ownership and Equity Protection Act of 1994 and its implementing regulations
- Freddie Mac HomeOneSM Mortgages
- Mortgages secured by properties subject to income-based resale restrictions that terminate upon foreclosure (or expiration of any applicable redemption period) or recordation of a deed-in-lieu of foreclosure, where the property value must be determined in accordance with Section 4406.1(g)(ii)
- 1- to 4-unit Primary Residences
- Second homes
- 1- to 4-unit Investment Properties
The Mortgage being refinanced and the Relief Refinance Mortgage – Same Servicer do not have to represent the same occupancy.
The Mortgaged Premises must be an attached or detached dwelling, a Manufactured Home, unit in a Condominium Project or PUD, or, if permitted by the Seller's Purchase Documents, a Cooperative Unit.
With respect to Mortgages secured by units in a Condominium Project or Cooperative Share Loans, the Seller does not need to again represent and warrant that the Project meets Freddie Mac eligibility requirements as of the Settlement Date of the Relief Refinance Mortgage – Same Servicer. Refer to Section 4302.3 for delivery requirements for Mortgages secured by units in a Condominium Project.
Property valuation requirements for the Mortgage being refinanced
With respect to the Mortgage being refinanced, the following property value requirements apply:
- The Seller of the Relief Refinance Mortgage – Same Servicer must have the appraisal used to originate the Mortgage being refinanced or the Last Feedback Certificate evidencing that the Mortgage being refinanced was eligible for the Property Inspection Alternative (PIA), or, if the Seller's Purchase Documents permitted the use of an AVM in lieu of an appraisal for the Mortgage being refinanced, the Seller must have the requisite AVM documentation, in the Mortgage file for the Mortgage being refinanced
- The appraisal, PIA or AVM, as applicable, for the Mortgage being refinanced must meet the requirements of the Seller's Purchase Documents
- The Seller retains all the representations and warranties for the appraisal or AVM, as applicable, for the Mortgage being refinanced, in accordance with the Seller's Purchase Documents, except that the Seller is not responsible for the representations and warranties regarding the value, condition and marketability of the Mortgaged Premises for the Mortgage being refinanced
The Seller must retain the appraisal used to originate the Mortgage being refinanced and all other related documentation or, if applicable, AVM documentation required by the Seller's Purchase Documents, as applicable, for the Mortgage being refinanced in the Mortgage file for the Mortgage being refinanced and must provide such documentation to Freddie Mac's Quality Control upon request.
Property valuation requirements for the Relief Refinance Mortgage – Same Servicer
With respect to the determination of property value for a Relief Refinance Mortgage – Same Servicer, the Seller has the two options identified below. The Seller's regulatory agency may require an appraisal report in instances where Freddie Mac does not; in such event the Seller must comply with any relevant requirements of regulatory agencies that mandate an appraisal.
- Option One: HVEThe Seller may determine the value of the Mortgaged Premises using a point value estimate from HVE. For detailed information on HVE please visit http://www.freddiemac.com/hve/hve.html.The Seller that receives a point value estimate and other data generated by HVE (HVE data) directly from Freddie Mac (as opposed to an authorized HVE distributor or reseller) to originate Relief Refinance Mortgages – Same Servicer will be deemed to have agreed to the terms and conditions relating to use of data generated by HVE as set forth in Sections 2401.2 and 2402.7.The following requirements must be met for the Seller to use an HVE point value estimate to determine property value for the Relief Refinance Mortgage – Same Servicer:
- The property must be a 1- or 2-unit dwelling
- The property must be an attached or detached dwelling, or a unit in a Condominium Project or PUD
- The property must not be a Manufactured Home, dwelling on a leasehold estate, or if the Seller is permitted to deliver Cooperative Share Loans under its Purchase Documents, a Cooperative Unit
- The HVE point value estimate must have a Forecast Standard Deviation that is no greater than 0.20 (corresponding to a Confidence Score of "H" (high) or "M" (medium))
- The Seller must maintain the HVE point value estimate for the Relief Refinance Mortgage – Same Servicer and any information necessary to evidence compliance with the HVE requirements. Upon Freddie Mac's request, the Seller must provide Freddie Mac with a copy of this HVE documentation.
- As of the Note Date of the Relief Refinance Mortgage – Same Servicer, the HVE point value estimate may not be more than 120 days old
If the above requirements are met and the Seller uses the HVE point value estimate to determine value:
- The Seller is relieved of representations and warranties regarding the value, internal and external condition and marketability of the Mortgaged Premises for the Relief Refinance Mortgage – Same Servicer, provided that if the Seller, as of the Settlement Date, is aware of any circumstances or conditions that would adversely affect the value, condition or marketability of the Mortgaged Premises, the refinance Mortgage is not eligible for sale to Freddie Mac under Option One and the Seller must determine the value of the Mortgaged Premises in accordance with Option Two described below
- The Seller represents and warrants that all information provided by the Seller for the purpose of obtaining the HVE point value estimate, including the address of the Mortgaged Premises, is true, complete and accurate
If the above requirements for use of the HVE point value estimate are not met, the Seller must determine the value of the Mortgaged Premises in accordance with Option Two described below.
For special delivery instructions related to the delivery of Mortgages for which the Seller determines property value using the HVE point value estimate refer to Section 4302.3.
- Option Two: New appraisal
- The Seller must obtain a new appraisal that meets the requirements of the Seller's Purchase Documents.The Seller is not responsible for the representations and warranties regarding the value, condition and marketability of the Mortgaged Premises. Notwithstanding the requirements of Section 5601.12(e), Freddie Mac will accept appraisal reports with a Uniform Appraisal Dataset (UAD) condition rating of C5 or C6 and/or a UAD quality rating of Q6 completed on an "as-is" basis; the appraisal does not have to be completed "subject to" needed repairs being completed.The Seller is not responsible for the completeness and accuracy of the appraiser's description of the Mortgaged Premises, and the accuracy of and support for, the appraiser's opinion of the market value of the Mortgaged Premises as specified in Section 5601.12.Notwithstanding the provisions of Sections 4201.5 and 5601.8(b), the Seller is not required to obtain a new appraisal if the Settlement Date is more than 120 days after the Note Date.When obtaining a new appraisal using Option Two above, the special appraisal and collateral requirements in Section 4603.5 do not apply to super conforming Relief Refinance Mortgages – Same Servicer.For Texas Equity Section 50(a)(6) Mortgages, the Seller must obtain an appraisal that meets Freddie Mac requirements and complies with Section 50(a)(6)(Q)(ix) and Section 50(h) of Article XVI of the Texas Constitution.
- Properties affected by disasters
- For Relief Refinance Mortgages secured by properties in areas affected by disasters:
- A Seller is not required to obtain a property inspection or new appraisal when a property valuation (either an HVE point value estimate or an appraisal) was relied on prior to a disaster, provided the Mortgage meets the requirements of Chapter 8202; and
- A Seller can use an HVE point value estimate with a high or medium confidence score after a disaster without obtaining a property inspection or appraisal to determine property condition, provided that the Mortgage meets the requirements of Chapter 8202
This flexibility for Freddie Mac Relief Refinance Mortgages does not impact Servicing requirements. Seller/Servicers must ensure that the Mortgaged Premises are covered by insurance meeting the requirements in Chapter 8202, and in accordance with the terms of the Security Instrument and applicable law. See Chapter 4407 for additional information relating to property eligibility requirements for properties affected by disasters.
- For adjustable-rate Relief Refinance Mortgages – Same Servicer, the maximum LTV ratio is 105%
- For fixed-rate Relief Refinance Mortgages – Same Servicer, there is no maximum LTV ratio
- There are no maximum TLTV and HTLTV ratios
Notwithstanding the foregoing, the maximum LTV and TLTV ratios for Texas Equity Section 50(a)(6) Mortgages is 80%.
- The Mortgage has not been delinquent in the most recent six months; and
- The Mortgage has not been 30 days delinquent more than once in the most recent 12 months or if the Mortgage is seasoned for less than 12 months, since the Mortgage Note Date
Except as set forth in Section 4302.2(g), there is no minimum Indicator Score required for eligibility of the Relief Refinance Mortgage – Same Servicer. However, the Seller must identify and deliver an Indicator Score for all Relief Refinance Mortgages – Same Servicer in accordance with the requirements of Section 5203.2(f). Unless a minimum Indicator Score is required (see Section 5203.2(f)), if the Seller determines that there is no usable Credit Score due to insufficient information or inaccurate information, the Mortgage is eligible for purchase as a Relief Refinance Mortgage – Same Servicer (refer to Sections 5203.2(f) and 6302.11 for Indicator Score delivery requirements).
- For employed income, a verbal verification of employment is required and must meet the requirements of Chapter 5302 and Topic 5300
- For self-employed income, verification of existence of the business is required and must meet the requirements of Topic 5300
- For income other than employed or self-employed income, verification of the source of income is required. The income source must be an eligible source of income under Topic 5100 through 5500.
The Seller may verify 12 months' reserves (using the monthly payment amount, as described in Sections 5501.2 and 5501.3) for the new refinance Mortgage in lieu of verifying an income source as stated above. Eligible sources of funds that can be used for reserves in this instance are limited to funds in the Borrower's depository accounts, securities or retirement accounts meeting the requirements in Section 5501.3(b). The Seller must obtain and maintain in the Mortgage file the most recent monthly or quarterly account statement. The Seller does not need to meet the documentation requirements of Sections 5501.3(b) and (c) or investigate large deposits or increases in balances as required in Section 5501.3(a).
Except as set forth above and in Section 4302.2(g), verification of funds is not required.
(ii) A Relief Refinance Mortgage – Same Servicer is an HPCT or an HPML with an Application Received Date on or after January 10, 2014
- A new credit report must be obtained
- The Mortgage must have a minimum Indicator Score of 620. If no Borrower has a usable Credit Score, the Mortgage does not have an Indicator Score and the Mortgage is not eligible for purchase as a Relief Refinance Mortgage – Same Servicer
- The Seller must verify the source of funds needed for closing. When using funds in the Borrower's depository accounts, securities or retirement accounts, the Seller must obtain and maintain in the Mortgage file the most recent monthly or quarterly account statement. The Seller does not need to meet the documentation requirements of Sections 5501.3(b) and (c) (e.g., investigate large deposits or increases in balances as required in Section 5501.3(a). All other asset types (other than depository accounts securities and retirement accounts) must meet Streamlined Accept documentation requirements in Sections 5501.3(b) and (c).
- The debt payment-to-income ("DTI") ratio must be calculated using the new credit report and verified income. The maximum DTI is 45%.
- When Hardest Hit Fund (HHF) program funds are used in accordance with Section 4302.2(k) and repayment of funds is required, the verified payment must be included in the monthly DTI ratio, unless repayment of funds is due only upon sale or default
- The Seller must verify the income source and amount and, at a minimum, meet the following documentation requirements:
| Income sources | Minimum documentation requirements |
| Employment income (primary or secondary) Bonus Overtime Tip income Automobile allowance |
|
| Commission income |
|
| Mortgage differential | Provide a copy of the agreement from the employer stating the amount of the payments |
| Military entitlements income Military Reserve and National Guard income | YTD Leave and Earnings Statement (LES) or written VOE documenting at least 30 days of income and a 10-day PCV, as described in Section 5302.2(d) |
| Seasonal employment |
|
| Income while on temporary leave from current employment | The Seller may use the Borrower's gross monthly income amount that was received prior to the temporary leave provided that the following documentation is obtained:
The Seller must receive no evidence of information from the Borrower's employer indicating that the Borrower does not have the right to return to work after the leave period. |
| Self-employed (all types; primary and secondary) |
|
| Notes receivable | Copy of the note and most recent one-month bank statement or other equivalent documentation evidencing receipt of the income |
| Dividend and interest Capital gains Royalty payments | Copy of complete individual federal income tax returns for the most recent one-year period; evidence of sufficient assets to support the qualifying income for dividend/interest income and capital gains |
| Trust income | Copy of the Trust Agreement |
| Retirement income Retirement account distributions as income Survivor and dependent benefit income Long-term disability income Social Security Supplemental Security Income Homeownership Voucher Program Public assistance income (including unemployment compensation) Foster care income |
|
| Alimony Separate maintenance Child support | Copy of the signed court order, legally binding separation agreement and/or final divorce decree and evidence of receipt of the total documented amount for the most recent one month |
| Housing or parsonage allowance |
|
| Tax exempt income | The most recent complete individual federal tax returns or other documentation evidencing that the income, or a portion of the income, is nontaxable. Only the nontaxable portion of income may be grossed up. |
| Rental income | An executed lease agreement or the most recent complete individual federal tax returns |
| Mortgage Credit Certificate (MCC) | A copy of the MCC |
When assets are used as a basis for repayment of obligations, and when restricted stock and/or restricted stock units are used to qualify, the Seller must follow the applicable documentation requirements in Topic 5300.
All Borrowers, whose income is used to qualify, or whose assets are used as a basis for repayment of obligations in accordance with the requirements of Section 5307.1, must sign Internal Revenue Service (IRS) Form 4506-T (or an alternate form acceptable to the IRS that authorizes the release of comparable tax information) on the application date and again on the Note Date, except that if the Form 4506-T obtained on the application date is submitted to the IRS and transcripts are received back from the IRS, the Seller is not required to obtain an additional Borrower signed Form 4506-T.
If submitting the Form 4506-T to the IRS, the Seller must ensure that the IRS receives the form prior to the form's expiration date. The Seller must retain the tax documentation received back from the IRS in the Mortgage file.
Income tax information obtained by the Seller directly from the IRS is acceptable in lieu of tax returns, provided that the Seller obtains and maintains in the Mortgage file all of the information that would be included on the tax returns.
For Borrowers with income that is derived from sources in Puerto Rico, Guam or the U.S. Virgin Islands that are exempt from federal income taxation under the Internal Revenue Code, the above requirements apply, except as follows:
- In lieu of a Form 4506-T, Borrowers with income that is derived from sources in Puerto Rico must sign the most recent version of Commonwealth of Puerto Rico Form 2907 titled "Request For Copy of the Return, Estate or Gift Certificate of Release" (Modelo SC 2907 "Solicitud De Copia De Planilla, Relevo De Herencia Y De Donacion") for submission to the Puerto Rico Department of the Treasury, Internal Revenue Area
- Borrowers with income that is derived from sources in Guam or the U.S. Virgin Islands must sign the Form 4506-T (or an alternate form that authorizes the release of comparable tax information) for submission to the Guam Department of Taxation and Revenue or Virgin Islands Bureau of Internal Revenue, as applicable
See Section 5102.3(a) for written verification requirements, Section 5302.2(d) for 10-day PCV requirements and Section 5302.3 for third-party employment and income verification requirements.
- If the Mortgage being refinanced has mortgage insurance coverage, then the same percentage of mortgage insurance coverage must be maintained for the Relief Refinance Mortgage – Same Servicer on the entire UPB
- If the Mortgage being refinanced does not have mortgage insurance coverage, then no mortgage insurance coverage is required for the Relief Refinance Mortgage – Same Servicer
The Seller/Servicer must comply with any requirements established by the applicable MI to transfer and maintain the existing mortgage insurance coverage.
Refer to Section 4302.3 for special delivery requirements for Relief Refinance Mortgages – Same Servicer related to mortgage insurance.
- The date on which the delinquent Mortgage becomes and remains current for a period of 12 consecutive scheduled monthly payments from the date of the last Delinquency
- The final sale or disposition of any real property securing a delinquent Mortgage (including, delivery of the property to the Seller or retention of the property by the Borrower pursuant to Freddie Mac's loss mitigation activities), and payment in full to Freddie Mac upon its sale or disposition
- The payment in full of the delinquent Mortgage
- The repurchase of the delinquent Mortgage by the Seller according to the repurchase procedures in the Guide. The repurchase price of each delinquent Mortgage will be calculated in accordance with Section 3602.4.
- The amount of the contribution does not exceed $500.00; and
- No repayment is required
The contribution is not considered cash out to the Borrower and does not have to be included in the calculation of the proceeds of the Relief Refinance Mortgage – Same Servicer as described in Section 4302.2(a).
- The amount of the contribution does not exceed $2,000.00
- No repayment is required; and
- The contribution is reflected on the Settlement/Closing Disclosure Statement
The contribution is not considered cash out to the Borrower provided it does not result in cash disbursed to the Borrower exceeding $250.00, as required in Section 4302.2(a).
As required under the Guide for all Mortgages sold to Freddie Mac, the Seller must comply with the requirements of all applicable laws in structuring and providing the contributions in Section 4302.2(l)(i) and (ii) above.