4407.2: Major disaster plan implementation and requirements (Future effective date 11/19/18)

(a) Major disaster plan implementation

On occasion, a disaster will occur that requires Freddie Mac to respond with extraordinary flexibilities and special requirements. In such a scenario, Freddie Mac will announce the implementation of its major disaster plan ("the plan") in a Guide Bulletin. The plan identified in this section provides the areas in which the flexibilities and special requirements will apply. Freddie Mac may decide to implement the plan in disaster areas declared by the President of the United States where Federal Emergency Management Agency (FEMA) individual assistance is available, or Freddie Mac may determine that a disaster's impact is such that the plan should be implemented.The age of documentation and Loan Product Advisor® submission flexibilities and requirements identified below will remain in effect for six months from the date Freddie Mac announces the implementation of the plan.

(b) Major disaster plan flexibilities and requirements

(i) Age of documentation and Loan Product Advisor submission

The following age of documentation flexibilities and requirements apply to property valuation:

An appraisal report must be dated no more than 180 days before, as applicable, the Note Date, the Effective Date of Permanent Financing for Construction Conversion and Renovation Mortgages, the modification date for Seller-Owned Modified Mortgages, the Conversion Date for Seller-Owned Converted Mortgages or any applicable assumption agreement date
The Feedback Certificate message that offers the Seller an automated collateral evaluation appraisal waiver is valid for 180 days as long as the Seller does not make any loan data changes that invalidate the appraisal waiver. (See Section 5601.9(c)(v) for additional information on maintaining appraisal waiver eligibility). If the appraisal waiver offered on the Feedback Certificate is more than 180 days old on the Note Date, an appraisal is required.

The following age of documentation flexibilities and requirements apply to underwriting the Borrower:

Any required credit and capacity underwriting documentation including, but not limited to, credit reports, verifications of income, employment and sources of funds, must be dated no more than 180 days before, as applicable, the Note Date, the Effective Date of Permanent Financing for Construction Conversion and Renovation Mortgages, the modification date for Seller-Owned Modified Mortgages, the Conversion Date for Seller-Owned Converted Mortgages or any applicable assumption agreement date
For Loan Product Advisor Mortgages, the Mortgage must be submitted to Loan Product Advisor no more than 180 days before and no later than the Note Date, or for Construction Conversion and Renovation Mortgages, the Effective Date of Permanent Financing
Note: Loan Product Advisor will automatically pull a new credit report for Mortgages that are submitted or resubmitted 120 days or more after the date of the credit report used in the Loan Product Advisor assessment.The requirements for the 10-day pre-closing verification of employment in accordance with Section 5302.2 and a verification of the current existence of the self-employed Borrower's business in Section 5304.1(g) continue to apply.

(ii) Freddie Mac Relief Refinance MortgagesSM and Freddie Mac Enhanced Relief Refinance® Mortgages

Sellers may apply the special flexibilities provided for Freddie Mac Relief Refinance MortgagesSM – Same Servicer and Freddie Mac Relief Refinance Mortgages – Open Access Mortgages secured by properties in areas impacted by disasters identified in Sections 4302.2 and 4303.3, respectively. In the event an HVE® value estimate has been systematically suspended for the Mortgaged Premises on a subsequent submission to Loan Product Advisor, Sellers may use the HVE value obtained on the original submission.Note: See Section 4304.7 for special flexibilities applicable to Freddie Mac Enhanced Relief Refinance® Mortgages with Application Received Dates on or after November 1, 2018.

(c) Collateral representation and warranty relief - automated collateral evaluation appraisal waiver offers and Loan Collateral Advisor®Once Freddie Mac notifies Sellers that its major disaster plan is in effect, automated collateral evaluation appraisal waiver eligibility and collateral representation and warranty relief eligibility may be systematically suspended for the specified areas on new Loan Product Advisor or Loan Collateral Advisor® submissions, respectively. Freddie Mac will monitor market developments within the impacted areas and reinstate eligibility at its discretion.See Section 5601.9 for ACE appraisal waiver and Loan Collateral Advisor collateral representation and warranty relief eligibility requirements.