Regis University’s Master of Arts in Counseling degree prepares students for careers as counselors who treat mental and emotional disorders at community agencies, nonprofit mental health agencies, child and family counseling centers, substance abuse centers and employee assistance organizations.
To develop a training manual that could be used by successive psychologists. The program for this 10-day counselor training manual has been structured so as to motivate the trainees for the training and make them confident that they will be able to master the skills and learn the attitudes that are expected of them.
Counseling
Choose Regis
Our highly interactive, on-campus Masters in Counseling degree is designed to help you develop a strong foundation of current theoretical knowledge and practical counseling skills that prepare you to work with diverse populations in mental health counseling settings. The Regis Counseling faculty is committed to creating open and supportive education environments that reflect the social, relational and cross-cultural contexts of learning that are essential for effective counselor training.
Our Master of Arts in Counseling (MAC) program is a 60-credit-hour degree that meets the academic requirements for Colorado Licensed Professional Counselors (LPC) set forth by the Colorado Licensed Professional Counselor Examiners Board. Regis University's Master of Arts in Counseling degree (Specialty: Clinical Mental Health Counseling) is accredited by the Council for Accreditation of Counseling & Related Educational Programs (CACREP) and the Council for Higher Education Accreditation (CHEA). Also approved by the International Registry of Counselor Education Programs (IRCEP), CACREP’s international affiliate, the degree curriculum provides hands-on training through one semester (6-credit hours) of Practicum in the department’s state-of-the-art Centers for Counseling and Family Therapy, followed by two semesters of supervised counseling internship in an approved community agency setting.
The Masters in Counseling program (MAC) is offered at Regis University's Thornton campus. Most students complete the program in three years, taking an average of two to three courses a semester.
Master of Arts in Counseling Program Mission StatementThrough the development of the whole person in mind, body, and spirit, Master of Arts in Counseling students gain an understanding of their values and an ethical willingness to effect personal and cultural transformation.The Program provides clinical mental health training and supervision to future Professional Counselors. Learning experiences are informed by Jesuit educational values and traditions. Students engage in personal reflection and critical thinking while developing a discerning mind and heart in order to serve those in need.Graduates are prepared to live as reflective, inquisitive, creative, and service oriented leaders. They are ready to make a positive impact with an emphasis on social justice and advocacy in a changing society.
Total Master’s Degree in Counseling Requirements: 60 credit hours
Core course requirements: 57 credit hours
Elective course requirements: 3 credit hours selected from any of the Post-Graduate Counseling Certificate course offerings.
| Start Term | Priority App Deadline/Interview Date | Final App Deadline/Interview Date |
| Spring 2020 | September 2, 2019/October 21, 2019 | |
| Summer 2020 | September 2, 2019/October 21, 2019 | February 3, 2020/March 2, 2020 |
| Fall 2020 | February 3, 2020/March 2, 2020 | June 1, 2020/June 22, 2020 |
| Spring 2021 | June 1, 2020/June 22, 2020 | September 7, 2020/October 19, 2020 |
| Summer 2021 | September 7, 2020/October 19, 2020 |
Program Requirements
Listed below are the required courses for completion of the Master of Arts in Counseling program at Regis University. The total degree requires 60 semester hours.
Once admitted, students have up to six years to complete all degree requirements. Students must maintain a 3.0 GPA throughout the duration of their program and receive grades of B- or better in every course taken that applies to their degree program. Students are also required to take the Counselor Preparation Comprehensive Examination (CPCE) and pass a Clinical Capstone Paper to meet degree requirements.
| Master of Arts in Counseling Core Requirements | |
| MCPY 602 | Spirituality and Counseling (3 semester hours) |
| MCPY 605 | Human Growth and Development (3 semester hours) |
| MCPY 610 | Theories of Counseling (3 semester hours) |
| MCPY 615 | Cultural Issues and Social Justice (3 semester hours) |
| MCPY 622 | Diagnosis and Treatment Planning in Clinical Mental Health Counseling (3 semester hours) |
| MCPY 625 | Professional Orientation and Ethical Issues (3 semester hours) |
| MCPY 630 | Groups: Process and Counseling (3 semester hours) |
| MCPY 635 | Counseling Techniques I (3 semester hours) |
| MCPY 636 | Counseling Techniques II (3 semester hours) |
| MCPY 640 | Research Methods and Program Evaluation (3 semester hours) |
| MCPY 645 | Clinical Assessment (3 semester hours) |
| MCPY 650 | Career Counseling and Development (3 semester hours) |
| MCPY 660 | Substance Abuse Counseling (3 semester hours) |
| MCPY 672 | Crisis, Trauma and Loss (3 semester hours) |
| MCPY 692 | Practicum: Clinical Supervision (3 semester hours) |
| MCPY 693 | Counseling Practicum (3 semester hours) |
| MCPY 698A | Supervised Counseling Internship A (3 semester hours) |
| MCPY 698B | Supervised Counseling Internship B (3 semester hours) |
| Graduate Elective | Two course from post-graduate counseling certificate courses (6 semester hours) |
To download a printable fact sheet with program details, click here.
The MAC Student Handbook can be accessed here.
Please note that recent course requirement updates may not be reflected in the list above. For further information contact the Office of Admissions at 303.458.4300.
Accreditation
Regis University is accredited by The Higher Learning Commission.
Regis University’s Master of Arts in Counseling degree (Specialty: Clinical Mental Health Counseling) is accredited by the Council for Accreditation of Counseling & Related Educational Programs (CACREP), the Council for Higher Education Accreditation (CHEA) and is approved by the International Registry of Counselor Education Programs (IRCEP).
FAQ
Is MAC CACREP Accredited?
Yes. CACREP (Council for Accreditation of Counseling and Related Educational Programs). CACREP only accredits high quality programs that meet specific national standards. CACREP is the accrediting arm of the American Counseling Association. Admission to the program is therefore competitive. Graduating from a CACREP program will help you immensely in your job search, application to a Ph.D. program, and will ease your application for licensure in many states.
What is the course delivery method?
Courses are ground-based only and offered in the following formats to meet the needs of both non-traditional and distance learning students:
- Term courses: These are seven weeks long and you come to class once a week from 5:30pm-10:00pm
- Semester courses: These are 14 weeks long and you come to class once a week from 6:00pm-9:00pm
- Intensive format: These are four days per month and you come to class Friday and/or Saturday from 9:00am-5:00pm
Where are classes held?
Classes are held on the Thornton campus.
How long will it take me to complete my degree?
You have six years from the date you sign your degree plan to complete your degree. A 60 credit hour program generally takes students approximately three years to complete.
What kind of professional experience does the person completing the recommendation form need to process?
The best recommendation forms come from individuals who have seen you work in professional and academic settings who would have knowledge of your interpersonal and academic skills.
How will I be notified of my admissions decision?
After the admission interview, candidates are notified by email and mail of their admission decision. Admission will be conditional pending the successful completion of a criminal background check.
When is orientation? Is is mandatory?
Orientation for all new students will always be the first day of class for the semester. Orientation is mandatory. Failure to attend orientation will jeopardize your ability to start the program.
How many hours are required for the practicum and internship?
Practicum is completed in a minimum of one semester. Each practicum student must complete 100 hours of logged experience at an approved community counseling site. Forty of the 100 hours of experience must be in direct counseling of clients. Practicum also requires one hour of weekly individual supervision with a program faculty member, one hour of weekly supervision with an onsite supervisor, and 1.5 weekly hours of group supervision with program faculty. Practicum students average 8-10 hours on site each week plus the additional hours of faculty supervision.
Internship is completed in a minimum of 2 semesters of coursework, and totals 700 hours of logged experience at an approved community counseling site. Internship students must also have 1.5 hours of group supervision a week with a faculty supervisor and one hour of weekly onsite supervision. Weekly hours on an internship site vary, but generally fall between 15 and 20 hours per week usually during business hours. The internship is conducted at a not-for-profit site and is unpaid.
What are the requirements beyond completion of the degree for obtaining the license?
The State of Colorado Licensure Board for Professional Counselors requires an additional 2,000 hours (minimum of 2 years) of experience under the supervision of a board approved supervisor. To become an LPC in Colorado you must also pass the state licensure exam for professional counselors. The licensure board issues a counseling license to applicants upon completion of all requirements.
Does Regis issue the license?
No. The Regis MAC program meets only the academic requirements for licensure. Regis University will issue the student a master’s degree in Counseling with a specialization in Community Counseling upon completion of all degree requirements.
Tuition
Visit our Cost of Attendance page to see the tuition and fee schedule for the MA Counseling program.
How to Apply
Take the next step in your Regis experience and start your application today.
- Select 'Graduate Admission'
- Select 'Graduate Application'
You can email your admission counselor with questions at healthcare@regis.edu.
Application Process
- Application: Completed the Graduated Application
- Application Fee: $50.00 non-refundable application fee (waived for Regis University graduates)
- Submit official degree-bearing transcript from a U.S. regionally accredited institution
- Submit mailed transcripts to:
Regis University
Office of Admissions
3333 Regis Boulevard
Mail Code: A-12
Denver, CO 80221-1099 - Submit electronic transcripts to sendtranscripttoRU@regis.edu.
- Regis accepts electronic transcripts from the following services: Scrip-Safe, Docufide, Avow Systems.
- Submit mailed transcripts to:
- Minimum cumulative grade point average of a 3.0 or above on a 4.0 scale. (Applicants with a GPA below 2.75 will be considered on an individual basis)
- Review the essay prompts. Two essays are required (instructions to upload the documents are included within the online application).
- Submit two recommendation forms. Select professional and/or academic references who can address your professional and academic potential.
- Submit a current resume including all professional and volunteer experience
- Faculty interview
- Additional admission requirements apply to international students who are non-U.S. citizens.
- Please remember: Applications that are incomplete and/or missing information will NOT be processed.
Materials in support of an application for admission become the property of Regis University and will not be provided or returned to an applicant.
Admission Deadlines and Interview Process
| Start Term | Priority App Deadline/Interview Date | Final App Deadline/Interview Date |
| Spring 2020 | September 2, 2019/October 21, 2019 | |
| Summer 2020 | September 2, 2019/October 21, 2019 | February 3, 2020/March 2, 2020 |
| Fall 2020 | February 3, 2020/March 2, 2020 | June 1, 2020/June 22, 2020 |
| Spring 2021 | June 1, 2020/June 22, 2020 | September 7, 2020/October 19, 2020 |
| Summer 2021 | September 7, 2020/October 19, 2020 |
- All Counseling and Family Therapy Division applicants must submit all application requirements prior to the application deadline to be considered for admission.
- Applicants will be invited to attend an admission interview with program faculty two weeks after the application deadline.
- During the half-day admission interview, prospective students participate in highly interactive group discussions and written reflective assignments designed to further assess each student's readiness for the program.
- Applicants who are offered admission to the Division of Counseling and Family Therapy must submit his or her response to the Office of Admissions no later than 10 business days after notification. A non-refundable deposit of $350.00 is required at the time of acceptance to guarantee a position in the program. The deposit will be applied directly to tuition.
Apple Mac Manual
Eligibility
Applicants seeking a Master of Arts in Counseling degree must possess a bachelor's degree in any field of study from a U.S. regionally accredited college or university.
An academic background in psychology or family studies is preferred but not required for applicants seeking program admission. Applicants must demonstrate an ability to achieve graduate-level writing and skills in critical analysis before admission to the program.
Eligibility for the Masters in Counseling programs is pending the successful completion of a criminal background check.Admission to Regis University does not guarantee professional licensure. To learn more, visit Disqualifying Offenses and Eligibility of Licensure Notification.
Ranking
The faculty admits students who demonstrate academic and psychological readiness. Admission is competitive and limited by the programs' need to maintain appropriate clinical faculty/student ratios in the respective programs.
An admissions committee made up of faculty representing the program the student is applying for (MFT or Counseling) carefully assesses each applicant's appropriateness for their respective programs through evaluation of application materials and assessments of the applicant during the admission process and admission interview. Applicants must complete the interview to be considered for admission and are required to attend an orientation upon acceptance. Eligibility for the Master's in Counseling or Master's in Marriage and Family Therapy programs is pending the successful completion of a criminal background check.
Viable candidates for admission often have a background in psychology or family studies demonstrated by several or all of the following:
- An undergraduate degree in psychology or family studies
- Work experience related to psychology or helping relationships
- Participation in personal psychotherapy
- Personal life experiences that would indicate an ability for introspection, empathy for others and psychological maturity
Related Certificates
- Single-Family
- The Learning Center
| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 0 to 99|
| ABANDONMENT OF PROPERTY Servicing: Default Management Either,
|
| ABILITY TO PAY RATE Servicing: Balloon/Resets The maximum interest rate the borrower can afford at the current level of income and expenses and the new term maturity of the modified mortgage. |
| ACCELERATED REMITTANCE CYCLE (ARC) Servicing: Investor Accounting A remittance option where funds are due to Freddie Mac on a contract specified business day. If the date is not specified, use the third business day following the accounting cutoff. |
| ACCELERATION Servicing: Default Management The exercise of the clause in the mortgage which gives the lender the right to declare the entire amount of the mortgage due prior to the maturity date under certain specified conditions, typically payment default or due-on-transfer violation. |
| ACCEPT MORTGAGE The Guide glossary A Loan Product Advisor® Mortgage that receives a Risk Class of Accept. |
| ACCEPTABLE NET WORTH The Guide glossary Generally defined as GAAP capital but Freddie Mac may make adjustments to GAAP net worth when Freddie Mac deems it appropriate. |
| ACCOUNTING CYCLE Servicing: Investor Accounting The one-month period beginning on the first day of the calendar month. Servicer reporting for the Accounting Cycle must be completed no later than the last day of the calendar month plus one Business Day. |
| ACCOUNTING CYCLE CUTOFF The Guide glossary For monthly reporting, the close of business on the 15th day of the month. If the 15th is not a Business Day, the Accounting Cycle Cutoff is the last Business Day before the 15th. |
| ACCOUNTING METHODS Servicing: Investor Accounting The four accounting methods are: The amount of principal and interest reported and remitted for mortgage activity is determined by the contract-specified accounting method selected at the time the mortgage was sold to Freddie Mac. |
| ACCOUNTING NET YIELD (ANY) The Guide glossary The ANY is the net yield rate that the Servicer uses to calculate the amount of interest to Freddie Mac each month. The ANY for each Mortgage is equal to Note Rate less the Servicing Spread of the Mortgage. The ANY for Mortgages purchased through RNY Cash or ARM Cash equals the Required Net Yield (RNY) except for Mortgages sold to Freddie Mac at a discount. |
| ACCRUED INTEREST Servicing: Investor Accounting Interest earned, but not yet paid, for the period of time that has elapsed since the borrower made the last payment. |
| ACKNOWLEDGEMENT AGREEMENT The Guide glossary An agreement between Freddie Mac, a Servicer and a third party designated by the Servicer in which Freddie Mac consents to and acknowledges a Servicer's grant to a third party of a security interest in the Servicer's conditional, nondelegable contract right to service Home Mortgages for Freddie Mac. |
| ADDITIONAL SUPPLEMENT The Guide glossary A disclosure document containing information solely provided by the Seller that supplements the information contained in the applicable Offering Circular or the Pool Supplement concerning the Mortgages in a PC Pool as of Settlement Date. |
| ADJUSTED BANK BALANCE Servicing: Investor Accounting The bank balance from the principal and interest Custodial Account bank statement, as of the accounting cutoff date (usually the 15th of the month), minus any outstanding drafts and plus deposits in transit. |
| ADVANCES Servicing: Default Management Monies paid from the Servicer’s funds for real estate taxes, property insurance premiums, and other expenses necessary to protect the mortgagee’s interest under the mortgage. |
| AFFILIATE The Guide glossary Any entity related to a Seller that is subject to common operating control and that is operated as part of the same system or enterprise. The Seller typically owns less than a majority of the voting stock or the Seller and the entity are subsidiaries of a third party. For purposes of the definitions of Correspondent, Mortgage Broker, Retail Mortgage and Wholesale Mortgage, Affiliate means: Any entity that is related to another party as a consequence of the entity, directly or indirectly, controlling the other party, being controlled by the other party, or being under common control with the other party. |
| AFFILIATED PERSONS The Guide glossary Affiliated Persons of a Servicer include the following:
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| AFFILIATES The Guide glossary Freddie Mac's term 'Affiliates' encompasses all of the following as defined in GAAP FAS No. 57: Affiliates A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the enterprise Management Persons who are responsible for achieving the objectives of the enterprise and who have the authority to establish policies and make decisions by which those objectives are to be pursued. Management normally includes:
Owners of record or known beneficial owners of more than 10% of the voting interests of the enterprise Related parties
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| AFFORDABLE SECOND The Guide glossary Subsidized secondary financing or other type of financial assistance, evidenced in the land records, that is provided by An Agency and that meets the requirements of Section 4204.2. |
| AGED TRANSACTIONS IN ERROR Servicing: Servicer Performance Profiles For Servicer Performance Profiles, the total number of all aged applied transactions in error (60, 90 or 90+ days) on the Loan Reconciliation Difference Report for each month in the most recent three-month period. |
| AGENCY The Guide glossary The sponsor or provider of financial assistance through an agency grant, Affordable Second® , IDA or unsecured loan, as applicable. An agency must be one of the following:
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| AGENCY-APPROVED CONVENTIONAL LENDER Discover Gold Through Quality Best Practices An entity approved to sell conventional home mortgages to Freddie Mac or Fannie Mae. |
| AGENT The Guide glossary For Wholesale Home Mortgages, an Agent is an entity or individual that is not an employee of a Seller and that acts for and on behalf of the Seller in originating Mortgages or in taking or processing a Mortgage application or underwriting or funding a Mortgage. |
| ALIMONY OBLIGATION Loan Product Advisor® For FHA borrowers, the monthly amount of alimony the lender chooses to treat as a reduction in the borrower's monthly gross income, rather than as a debt obligation, per the Liabilities section of HUD Handbook 4000.1. |
| ALLONGE The Guide glossary An addendum attached to a Note that can be used for endorsements. |
| ALTERATIONS IMPROVEMENTS & REPAIRS Loan Product Advisor® The cost of any alterations, improvements, repairs and rehabilitation to be made on the subject property. |
| ALTERNATIVE ACCOUNTING METHOD (ACTUAL/ACTUAL) Servicing: Investor Accounting An investor reporting accounting method used for partial reinstatements.
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| ALTERNATIVE FIRST NAME Loan Product Advisor® An additional first name under which the borrower may have been granted credit. |
| ALTERNATIVE LAST NAME Loan Product Advisor® An additional last name under which the borrower may have been granted credit (e.g., maiden name). |
| ALTERNATIVE TO FORECLOSURE Servicing: Default Management Reinstatements, relief and workout options that, when used, result in the resolution of a mortgage delinquency without foreclosing on the property. |
| A-MINUS MORTGAGE The Guide glossary A Loan Product Advisor® Mortgage that:
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| AMENITIES The Guide glossary Amenities are a portion or type of Common Elements that enhance project attractiveness and owner enjoyment even though the feature is not essential to the project's use. Examples include, but are not limited to swimming pools, spas, gardens, beach access, golf courses or golf club memberships, and ski areas or ski passes. |
| AMORTIZATION Servicing: Servicing System Repayment of a mortgage debt with periodic payments of both principal and interest, calculated to retire the obligation at the end of a fixed period of time. |
| AMORTIZATION MONTHS Loan Product Advisor® Term of the loan in months. |
| AMORTIZING PERIOD The Guide glossary For Initial InterestSM Mortgages, the Amortizing Period is the period (expressed in months) when monthly payments are fully amortizing principal and interest payments; the Amortizing Period begins on the First Amortizing Payment Date and ends at the end of the Mortgage term. Initial Interest Mortgages are no longer eligible for sale to Freddie Mac. |
| AMORTIZATION SCHEDULE Servicing: Servicing System A schedule that shows the amount of principal and interest due at regular intervals and the unpaid principal balance of the mortgage after each payment is made. |
| AMORTIZATION TYPE Loan Product Advisor® An indication of whether the interest rate payable under the Note is subject to change over the life of the loan. |
| AMOUNT DUE Servicing: Investor Accounting An institution's liability to Freddie Mac calculated and reported each accounting cycle. (A liability is a financial obligation for which one business owes another). |
| AMOUNT EXISTING LIENS Loan Product Advisor® Outstanding balance of the mortgage(s) to be paid off by this loan, including second trusts and Home Equity Lines of Credit, recorded against the subject property to be paid off by this loan. For example, if the borrower's current first mortgage has an unpaid principal balance of $90,000, and the current second mortgage on the same property has an unpaid principal balance of $10,000, the amount existing liens would = 100,000. |
| AMOUNT OF MORTGAGES AND LIENS Loan Product Advisor® Total of all mortgages and liens secured by the individual property referenced in real estate owned (REO) section in which the borrower has an ownership interest and/or for which the borrower is obligated. |
| AN AGENCY The Guide glossary The sponsor or provider of financial assistance through an agency grant, Affordable Second, IDA or unsecured loan, as applicable. An agency must be one of the following:
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| ANY Accounting Net Yield. |
| APPLICATION RECEIVED DATE The Guide glossary The date on which receipt of the Borrower's financial information first triggers the requirement to provide the federal Loan Estimate disclosure to the Borrower in connection with the Mortgage. |
| APPRAISAL Servicing: Default Management An opinion or estimate of value performed by a state-licensed or certified real estate appraiser in the state in which the property is located. Also refers to the process by which a value estimate (factual analysis) is obtained. |
| APPRAISAL IDENTIFIER The Guide glossary The unique identifier assigned by the Uniform Collateral Data Portal® (UCDP®) to the appraisal data delivered to the UCDP for the subject Mortgage. |
| APPRAISAL TYPE/MAF (Minimum Assessment Feedback) Loan Product Advisor® Indicates the type of appraisal report required to meet Freddie Mac's purchase guidelines. |
| APPRAISED VALUE OF PROPERTY Loan Product Advisor® A statement of the property's value from a valid property valuation source. |
| ARC Servicing: Investor Accounting Accelerated Remittance Cycle. |
| ARM The Guide glossary An ARM is an adjustable-rate Mortgage. |
| ARM ADJUSTMENT TYPE Loan Product Advisor® An indication of the type of ARM adjustment product. |
| ARM PC The Guide glossary An ARM PC is a mortgage-backed security issued by Freddie Mac pursuant to the relevant Master Trust Agreement, representing a beneficial ownership interest in a specified Pool of ARMs. The term 'ARM PC' includes a WAC ARM PC. |
| ARM PC LIFETIME CEILING The Guide glossary For WAC ARM PCs, the ARM PC Lifetime Ceiling is the weighted average of the Lifetime Ceilings of the underlying Mortgages, minus the Credit Fee in Yield and the Minimum Contract Servicing Spread. |
| ARM PC MARGIN The Guide glossary For WAC ARM PCs, the ARM PC Margin is the weighted average of the Margins of the underlying Mortgages, minus the Credit Fee in Yield and the Minimum Contract Servicing Spread. |
| ARM PC OFFERING CIRCULAR The Guide glossary The ARM PC Offering Circular is the offering circular, in effect on the Date of Seller’s Offer, that relates to the ARM PCs being sold. Each ARM PC Offering Circular incorporates any amendments or supplements to that offering circular in effect on the Date of Seller’s Offer or sale. |
| ARM QUALIFYING PITI The Guide glossary For Adjustable Rate Mortgage (ARM) products, this is the principal, interest, taxes and insurance (PITI) based on the interest rate that must be used for qualifying the borrower per the ARM calculation rules as indicated in the product guidelines. |
| ARM QUALIFYING RATE Loan Product Advisor® The interest rate used in calculating the borrower's PITI to qualify the borrower for the subject property mortgage. |
| ARM SUBSEQUENT ADJUSTMENT PERIOD Loan Product Advisor® Number of months between subsequent rate or payment adjustments after the first initial change date. |
| ARREARAGE Servicing: Default Management The amount past due on a mortgage, excluding any amounts that become due through acceleration. |
| ASSET AMOUNT Loan Product Advisor® Total dollar value of a given asset category for all borrower(s). |
| ASSET CATEGORY Loan Product Advisor® Summary-level name given to an asset to distinguish it from other types of assets. |
| ASSET TYPE Loan Product Advisor® Specifies the general names (type) of items commonly listed as financial assets of the borrower(s) in a mortgage loan transaction. Assets may be either liquid or fixed and are associated with a corresponding asset amount. |
| ASSIGNED MSP Loan Product Advisor® The mortgage service provider (MSP) selected for loan data assignment. |
| ASSIGNED/RELEASED BY Loan Product Advisor® The organization that assigned or released the loan data. |
| ASSIGNMENT STATUS Loan Product Advisor® An indication of the assigned or released status for a specific loan transaction. |
| ASSUMPTION AGREEMENT Servicing: Default Management A written agreement by a buyer to assume the obligation under an existing note, originally incurred by another. |
| AUS Loan Product Advisor® Automated Underwriting System. |
| AUS RISK CLASS Loan Product Advisor® Also Known As: Risk Class. The category listed on the Full Feedback Certificate that defines the level of underwriting required, any special underwriting provisions and, if applicable, relief from certain representations and warranties. |
| AUS STATUS Loan Product Advisor® Indicates if the data received for a loan application was adequate for Loan Product Advisor® risk assessment. |
| AUS TRANSACTION NUMBER Loan Product Advisor® Also Known As: Transaction No. A unique number assigned to a loan by Loan Product Advisor each time the loan is submitted for assessment. Use this number to identify the transaction when you contact Freddie Mac Customer Service. |
| AUTOMATED VALUATION MODEL (AVM) The Guide glossary An AVM is a mathematically based software program that produces a value or value range for a subject property. |
| AVERAGE DAYS, EXCLUDING DELAYS Servicing: Servicer Performance Profiles For Servicer Performance Profiles, foreclosure timeline criteria that measure and assess the Servicer's actual performance on average to the performance that has been capped for the 'designated counsel credit.' It captures all loans that have been acquired through foreclosure sale (reverted to REO) without delays and compares your performance to our state standards. The measurement captures the length of time from the Due Date of the Last Paid Installment until the foreclosure sale date. |
| AVERAGE DAYS, INCLUDING DELAYS Servicing: Servicer Performance Profiles For Servicer Performance Profiles, foreclosure timeline criteria that measure and assess the Servicer's actual performance on average to the performance that has been capped for the 'designated counsel credit.' It captures all loans that have gone to foreclosure sale (reverted to REO), regardless of whether they were impacted by a delay and compares your performance to our state standards. The measurement captures the length of time from the Due Date of the Last Paid Installment until the foreclosure sale date. |
| AVERAGE NUMBER OF DAYS TO REPORT PAYOFFS Servicing: Servicer Performance Profiles For Servicer Performance Profiles, a metric that calculates the average number of days in which a Servicer reports all of the payoffs per accounting cycle. |
BALLOON LOAN MODIFICATION Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| BALLOON MATURITY DATE The Guide glossary For a Balloon/Reset Mortgage, the Balloon Maturity Date is the maturity date of the Balloon Note.
Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
BALLOON NOTE Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
BALLOON NOTE ADDENDUM Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
BALLOON PAYMENT Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| BALLOON/RESET MORTGAGE The Guide glossary A fixed-rate, level-payment Home Mortgage with the following characteristics:
|
BALLOON RIDER Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
BALLOON TERM Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| BANK STATEMENT Servicing: Investor Accounting A summary of all of the investors’ share of cash receipts and cash disbursements. |
| BANKRUPTCY Servicing: Default Management A judicial proceeding whereby a person’s creditors are allowed to have his or her estate administered for their benefit. This action affects the borrower’s personal liability for the debt, but does not affect the lien or the mortgage. |
| BASE EMPLOYMENT INCOME Loan Product Advisor® Borrower's employed and/or self-employed monthly income from all acceptable and verifiable sources that can reasonably be expected to continue for at least the next three years. For more information, refer to Guide Chapter 5301 on stable monthly income. |
| BASE LOAN AMOUNT Loan Product Advisor® Amount to be financed by the borrower excluding financed PMI, MIP or Funding Fee financed. |
| BEST EFFORTS CONTRACT The Guide glossary An agreement between the Seller and Freddie Mac for the purchase of a specified Mortgage with respect to which the Seller's obligation to deliver the Mortgage becomes mandatory only when and if the Mortgage is closed and funded. |
| BIDDING INSTRUCTIONS Servicing: Default Management The opening price for a property at the foreclosure sale, which could also be the closing price if there is no competitive bidding. |
| BIF The Guide glossary The abbreviation for the Bank Insurance Fund. |
| BIWEEKLY MORTGAGE Servicing: Investor Accounting A mortgage where the borrower makes a principal and interest payment every two weeks pursuant to either the terms of the note, a rider, or a separate agreement. Each payment received is applied as a P&I payment. The biweekly payment schedule cannot be changed. |
| BIWEEKLY PAYMENT PLAN Servicing: Investor Accounting A plan where the borrower’s account is debited every two weeks, but a principal and interest payment is applied once a month pursuant to the terms of the note. The biweekly payments may be stopped at any time. |
| BONUSES Loan Product Advisor® The income derived from optional compensation paid out by the employer that is linked to the employers’ overall performance and/or individual employee performance. |
| BOOK-ENTRY FORM The Guide glossary A UMBSTM, MBS, ARM PC or SupersTM that is issued in Book-Entry Form is:
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| BOOK-ENTRY RULES The Guide glossary The provisions in effect from time to time that:
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| BORROWER The Guide glossary The party obligated to repay the indebtedness secured by the Mortgaged Premises. For a Home Mortgage, the Borrower must be one of the following:
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| BORROWER CONTRIBUTION The Guide glossary The total amount contributed by the Borrower to the down payment, Closing Costs, Financing Costs and Prepaids/Escrows. |
| BORROWER EVALUATION NOTICE The Guide glossary The notice a Servicer must send to a Borrower once the Servicer completes its evaluation of the Borrower for an alternative to foreclosure. |
| BORROWER FINANCIAL STATEMENT (Form 1126) Servicing: Default Management A form containing information supplied by the borrower about his or her assets, liabilities, income and expenses. The form also includes a section for you to document servicing information about the mortgage and property. |
| BORROWER FUNDS The Guide glossary All funds paid by the Borrower in connection with the property purchase or Mortgage financing, comprised of Borrower Personal Funds and Other Borrower Funds. |
| BORROWER INTENTION/REQUEST STATEMENT Servicing: Balloon/Resets The sample statement designed by Freddie Mac for a Servicer to use with a Required Notice to a Borrower whose Balloon/Reset Mortgage is maturing. The statement is used to help determine if the Borrower:
Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| BORROWER'S LETTER Servicing: Default Management A letter signed by the borrower containing a description of the circumstances preventing the borrower from making mortgage payments (involuntary inability to pay). The letter also reveals whether the borrower wants to retain ownership of the property and whether he or she has a course of action to resolve the delinquency. |
| BORROWER PERSONAL FUNDS The Guide glossary Funds derived from eligible sources, as described in Section 5501.3(b), and paid by the Borrower in connection with the property purchase or Mortgage financing. |
| BORROWER RESPONSE PACKAGE The Guide glossary The documents that must be submitted by a Borrower in order to be evaluated for certain alternatives to foreclosure. |
| BORROWER SOLICITATION PACKAGE The Guide glossary The documents that must be sent to a delinquent Borrower informing him or her of alternatives to foreclosure and the process and documentation required to be submitted to a Servicer in order to be evaluated for an alternative to foreclosure. |
BPO The Guide glossary |
| BRANCH NUMBER Loan Product Advisor® The lenders' branch identification code for the branch associated with the loan. Loan Product Advisor AUS does not validate. Change this field if you assign to a different Seller/MSP requiring a different branch number. |
| BROKER/TPO NAME Loan Product Advisor® Name of the Broker's Company. Also Known As: Broker Company Name, Broker Name. |
| BROKER/TPO NUMBER Loan Product Advisor® Freddie Mac-assigned Third-Party Originator (TPO) number for TPOs (e.g., brokers) accessing Loan Product Advisor® directly. |
| BUILDING STATUS Loan Product Advisor® Physical status of the structure. |
| BULLETIN The Guide glossary A publication that is issued by Freddie Mac and amends, supplements, revises or terminates a provision of the Guide. |
| BUSINESS DAY The Guide glossary A day other than:
|
BUYDOWN CUSTODIAL ACCOUNT |
| BUYDOWN TERM (months) Loan Product Advisor® Total number of months over which the buydown applies. For instance, if the interest rate changes over a period of two years, the buydown term is 24 (12 months in a year x 2 years). |
| BUYER CLOSING COSTS Loan Product Advisor® Dollar amount of net closing costs paid by the borrower on the subject property excluding discount points, prepaid items and interested party contributions. Identifies buyer-paid closing costs that will be counted toward the Minimum Required Investment. |
| CALCULATED REMAINING MATURITY Servicing: Servicing System The calculation that determines the number of months remaining to maturity for a mortgage based on the unpaid principal balance divided by the principal and interest payment. |
| CANCELLATION RATE Discover Gold Through Quality Best Practices The percentage of wholesale mortgage applications submitted by a mortgage broker or correspondent to a Seller that are subsequently canceled by the mortgage broker or correspondent. |
| CAPITALIZATION Servicing: Default Management The addition of certain allowable amounts to the outstanding principal balance (applicable in completing loan modifications). |
| CAR (CUSTODIAL ACCOUNT RECONCILIATION) REVIEW Servicing: Investor Accounting For Servicer Performance Profiles, an analysis Freddie Mac performs on your principal and interest and escrow custodial account reconciliations to determine compliance with our requirements. The process not only ensures our funds are safeguarded but can also help you better manage cash flow activities. |
| CASH (or Market Value) Loan Product Advisor® The dollar amount of the cash or market value of the borrower's applicable asset type. The market value is the price at which an asset is transferred between a willing buyer and a willing seller, each of whom has a reasonable knowledge of all pertinent facts and neither being under any compulsion to buy or sell. Market value and cash value tend to be equal. |
| CASH ADJUSTMENT Servicing: Investor Accounting Adjustments that clear only after you make an adjustment (deposit or withdrawal) to your bank account. |
| CASH DISBURSEMENT Servicing: Investor Accounting Anything that reduces your bank balance and may be individually designated as a debit, journal entry (JE), manual adjustment, check transfer GPI EFT/ACH debit, reversal or something similar. |
| CASH DISBURSEMENT VARIANCE Servicing: Investor Accounting Variances that occur during the accounting cycle when the amount of funds withdrawn from the principal and interest custodial account are different from the amount of cash made available to us as stated on the Remittances Made line of the Monthly Account Statement. |
| CASH MANAGEMENT Servicing: Investor Accounting The process of:
|
| CASH MANAGEMENT REPORTS Servicing: Investor Accounting Outputs of the cash management process that help you when completing your custodial account reconciliation process, including the following: |
| CASH OUT AMOUNT Loan Product Advisor® For a cash-out refinance mortgage, the amount of the proceeds that:
|
| CASH PURCHASE CONTRACT The Guide glossary A Cash Purchase Contract may be any one of the following Purchase Contracts:
|
| CASH RECEIPT Servicing: Investor Accounting Any transaction that increases your bank balance, and may include:
|
| CASH RECEIPTS VARIANCE Servicing: Investor Accounting Variances that occur when your deposits do not equal the Amount Due that Freddie Mac processed as shown on the MAS. The total amount due us is comprised of loan-level transactions and other billings we processed. |
| CASH-RELEASED XCHANGESM The Guide glossary Cash-Released XChange is a contract option under which a Seller sells fixed-rate Mortgages under a Mandatory Cash Contract or a Best Efforts Contract and concurrently transfers Servicing to a Freddie Mac-approved Servicer selected by Freddie Mac. Mortgages sold under this contract option may be referred to as “Mortgages sold servicing released.” |
| CASH STATEMENT (or the Seller/Servicer Remittance Analysis) Servicing: Investor Accounting A summary report Freddie Mac sends you that can help you manage and monitor your remittance process. The report summarizes:
|
| CAUTION MORTGAGE The Guide glossary A Loan Product Advisor® Mortgage that receives a Risk Class of Caution. |
| CHARGEOFF Serving: Default Management Cessation of collection efforts on a mortgage when the debt is deemed to be uncollectable. A chargeoff does not cancel the note or release the lien on the property. |
| CITIZENSHIP STATUS Loan Product Advisor® Specifies the borrower's current Immigration and Naturalization Service (INS) status. |
| CLOSELY HELD CORPORATION Discover Gold Through Quality Best Practices A corporation whose ownership of common stock is by a single individual, a family, or a few holders. The stock is not publicly traded. |
CLOSING COSTS
|
| COFI (COST OF FUNDS INDEX) Servicing: Default Management The monthly average cost of savings, borrowings and advances made available by 11th District members of the Federal Home Loan Bank of San Francisco (applies to adjustable rate mortgages). |
| COLLATERAL Servicing: Default Management Any property that serves as security for the discharge of a debt (for example, the real estate pledged as security for a mortgage). |
| COMMISSIONS Loan Product Advisor® Borrower income that is based upon a percentage of the goods or services the borrower sells. |
| COMMITMENT AMOUNT The Guide glossary The Commitment Amount is the aggregate UPB of all Mortgages that can be delivered under Pricing Identifier Terms or a Purchase Contract, as applicable, subject to any tolerances. |
| COMMON ELEMENTS The Guide glossary Any portion of a project not included in the units and are used by unit owners who share in their expense, maintenance and operation. Common Elements are defined in the Project Documents, and may include but are not limited to parking, walkways, lighting, elevators, boilers, hallways, foyers, and legal ingress and egress to individual units. The term includes Amenities and to Limited Common Elements. |
| COMMUNITY SAVINGS SYSTEM The Guide glossary A savings system to which members of a community make regular contributions and from which members are entitled to a distribution of funds in accordance with a specified plan. A nonprofit community organization must administer the savings system. |
| COMPLETE LOAN PROSPECTOR® EVALUATION Loan Product Advisor® A Loan Product Advisor evaluation is complete if Loan Product Advisor returns a Risk Class of Accept or Caution and a Documentation Level of Streamlined Accept Documentation or Standard Documentation. |
| CONCURRENT TRANSFER OF SERVICING The Guide glossary A Transfer of Servicing initiated by a Seller to a Servicer that occurs, subject to prior Freddie Mac approval, concurrently with Freddie Mac´s purchase of a Mortgage on the Settlement Date. For the sake of convenience, the Seller may be referred to as the “Transferor Servicer” and the Servicer may be referred to as the “Transferee Servicer.” In each instance, the Mortgage is delivered for certification to the Servicer´s Document Custodian. |
| CONDOMINIUM CONSTITUENT DOCUMENTS The Guide glossary The declaration of condominium, master deed or similar instrument, the bylaws and regulations, and other documents pertaining to a particular Condominium Project. |
| CONDOMINIUM HOTEL The Guide glossary A Condominium Hotel is a project that is operated and managed as a hotel or similar type of transient property, even though the units are individually owned |
| CONDOMINIUM PROJECT The Guide glossary A project that is legally established as a Condominium Project in compliance with the applicable State law in which the project is located. |
| CONDOMINIUM UNIT The Guide glossary A one-unit dwelling located in a Condominium Project. |
| CONDOMINIUM UNIT MORTGAGE The Guide glossary A Mortgage secured by a unit in a Condominium Project. |
| CONFIDENCE LEVEL Discover Gold Through Quality Best Practices A statistical term that indicates the reliability of the result of a sample review. It is usually expressed as a percentage. If a result were said to be 'at a 95 percent confidence level,' the same result would be found in 95 out of 100 samples of the same size selected from the same population. |
| CONSTANT MATURITY TREASURY (CMT) INDEX The Guide glossary For adjustable-rate Mortgages (ARMs), the CMT Index is the weekly average yield on United States Treasury securities adjusted to a specified constant maturity, such as one, three or five years, as made available by the Federal Reserve Board. |
| CONSTRUCTION CONVERSION MODIFICATION AGREEMENT The Guide glossary The agreement executed by the Borrower that modifies the terms of the Interim Construction Financing (the Note and/or Security Instrument) to state the terms of the Permanent Financing. |
| CONSTRUCTION CONVERSION MORTGAGE The Guide glossary A Mortgage, the proceeds from which are used for Permanent Financing that replaces the Interim Construction Financing obtained by the Borrower to:
|
| CONTAMINATED SITES The Guide glossary Any real property that has been identified:
|
| CONTRACT See Purchase Contract. |
| CONTRACT COMMITMENT AMOUNT The Guide glossary For the Guarantor and MultiLender Swap programs, the dollar amount of Mortgages that Freddie Mac agrees to purchase, as specified in the applicable Purchase Contract. |
| CONTRACT NON-COMPLIANCE FEE or CHANGE FEE Servicing: Investor Accounting An amount Freddie Mac assesses based on the following circumstances: (a) $100 per mortgage per occurrence when you request us to:
(b) $100 per mortgage or transaction up to $10,000 maximum per occurrence if:
If the 11th calendar day is a non-Business Day, then the documents must be received by DCS the last Business Day prior to the 11th calendar day, or Form 1034b, Custodial Certification Schedule (and the unrecorded Balloon Loan Modification, Form 3293, if you use Freddie Mac's Document Custodial Services (DCS) as your Note holder) is not received and certified by DCS by the second Business Day prior to the accounting cycle cutoff in the month following the Balloon Maturity Date. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| CONTRIBUTOR Loan Product Advisor® Specifies the source of the temporary subsidy buydown funds. |
| CONTROLS Discover Gold Through Quality Best Practices Standards and procedures adopted within a seller's organization to manage risk. |
CONVERSION DATE Convertible ARMs are not eligible for sale to Freddie Mac. |
CONVERSION FORMULA Convertible ARMs are not eligible for sale to Freddie Mac. |
CONVERSION WINDOW Convertible ARMs are not eligible for sale to Freddie Mac. |
| CONVERTED MORTGAGE The Guide glossary A conventional, fully amortizing, level payment, fixed-rate Mortgage, originated as a Convertible ARM, that had an adjustable interest rate until the Borrower exercised the option to convert to a fixed interest rate. See also Freddie Mac-Owned Converted Mortgage and Seller-Owned Converted Mortgage. Convertible ARMs are not eligible for sale to Freddie Mac. |
CONVERTIBLE ARM Convertible ARMs are not eligible for sale to Freddie Mac. |
| COOPERATIVE The Guide glossary The real estate owned by an individual, investor group, partnership, or coporation (each such owner, a 'Cooperative Coproration') in fee simple or an acceptable leasehold that includes the allocation of specific dwelling units to shareholders of the Cooperative Corporation. |
| COOPERATIVE SHARE LOAN The Guide glossary A loan secured by a first lien on the interested granted to a shareholder (the 'Interest') in the owner (i.e., the 'Cooperative Corporation') of (i) the Cooperative Project and (ii) the occupancy rights to a specific Cooperative Unit. The loan is secured by a perfected lien on the shares representing the Interest and an assignment of the lease governing the occupancy of the Cooperative Unit.. |
| COOPERATIVE UNIT The Guide glossary A 1-unit dwelling located in a Cooperative Unit. |
| CORRESPONDENT The Guide glossary An entity that typically sells the Mortgages it originates to other lenders. The Correspondent performs some or all of the loan processing functions such as taking the Mortgage application; ordering credit reports, appraisals, and title reports; and verifying the Borrower's income and employment. The Correspondent may or may not have delegated underwriting and typically funds the loans at settlement. The Mortgage is closed in the Correspondent's name and the Correspondent may or may not service the Mortgage. The Correspondent may use a Mortgage Broker to perform some of the processing functions or even to fund the Mortgage on its behalf; however under such circumstances, such a Mortgage will be considered, and should be delivered as, a Mortgage Broker third party origination Mortgage and not as a Correspondent third party origination Mortgage. (See the definition of Affiliate and Mortgage Broker.) |
| COUPON The Guide glossary The Coupon is the interest rate, expressed as an annual percentage, which is passed through monthly to a security investor. For WAC ARM PCs, the Coupon is derived by calculating a weighted average of the Note Rates of the underlying Mortgages, and then subtracting the Credit Fee in Yield and the Minimum Contract Servicing Spread. For Supers, the Coupon is the same fixed interest rate as the underlying assets, and is generally in a multiple of 0.500%. |
| CREDIT ENHANCEMENT Servicing: Default Management An agreement between Freddie Mac and a Seller/Servicer and-/or a third party, defining risk sharing responsibility for covering losses, usually resulting from a borrower defaulting on a mortgage obligation and/or a Seller/Servicer’s institutional practices. |
| CREDIT FEE IN PRICE The Guide glossary For the Guarantor, MultiLender Swap and Cash programs, a Credit Fee in Price is a one-time fee that is associated with the type of mortgage product, loan purpose, Mortgaged Premises or other attributes of a Mortgage and is assessed and billed to the Seller at the time the Mortgage is sold to Freddie Mac. |
| CREDIT FEE IN YIELD The Guide glossary For the Guarantor and MultiLender Swap programs, the Credit Fee in Yield is the management and guarantee fee retained by Freddie Mac as specified in the applicable Purchase Documents. The Credit Fee in Yield is assessed and remitted by the Servicer each month. |
| CREDIT SCORE The Guide glossary A number summarizing an individual's credit profile that indicates the likelihood that a Borrower will repay future obligations. |
| CS/LTV FEE LEVEL Loan Product Advisor® A credit fee in price based on credit score and loan-to-value as identified on Exhibit 19 and paid in accordance with the provisions in Chapter 6303 of the Guide. |
| CUMULATIVE BALANCE Servicing: Investor Accounting The cumulative difference between what you have remitted to Freddie Mac and what we are posting due (or how well you are managing your remittance process). Your goal is to maintain a zero balance by remitting amounts due in a timely manner and maximizing your float. |
| CUMULATIVE VARIANCE LOG Servicing: Investor Accounting A record of all variances outstanding (i.e. unresolved) as of the accounting cutoff regardless of the cycle it originated. Take corrective action to remedy all outstanding variances to manage your principal and interest custodial account(s). |
| CURRENT CYCLE VARIANCE LOG Servicing: Investor Accounting A record of all causes of variances. Complete a separate log for each type of variance (cash receipts and cash disbursements). Identify and record all causes of a variance identified at each step of the process, including any variances which are offset by cash receipts or disbursements variances. |
| CUSIP NUMBER The Guide glossary A CUSIP Number is a unique nine-digit alphanumeric designation assigned by the CUSIP Service Bureau to each Pool and Supers Pool. The CUSIP Number is used to identify the Pool or Supers Pool on the books and records of the Federal Reserve Bank's book-entry system. All UMBS, MBS and ARM PCs in Book-Entry Form and all Supers are identified by a CUSIP Number. |
| CUSTODIAL ACCOUNT The Guide glossary A Demand Deposit Account or Interest-Bearing Deposit Account established and maintained by a Servicer at an Eligible Depository, into which Principal and Interest Payments, Escrow Funds and other monies due to Freddie Mac or held on behalf of Freddie Mac Mortgages are deposited. The types of Custodial Accounts are:
|
| CUSTODIAL ACCOUNT REVIEW SCORE Servicing: Servicer Performance Profiles For Servicer Performance Profiles, criteria that measure compliance with our custodial account reconciliation requirements. |
| CUSTODIAL RECONCILIATION Servicing: Investor Accounting The process of ensuring that your cash management and investor reporting systems are in balance with our loan-level accounting records. |
CUSTODIAN A Custodian must satisfy the eligibility requirements described in Section 2202.2 and must enter into the Form 1035, Custodial Agreement, described in Section 2202.3. The definition of Custodian includes both a third-party Custodian and a Seller/Servicer acting as its own Custodian, as described in Section 2202.2. |
| CUT-OFF DATE Servicing: Default Management The date up to which loan collections are included in reports and remittances to Freddie Mac. |
| DAILY COLLECTIONS REPORT Servicing: Investor Accounting A report that summarizes the investors’ share of collections received on a given day. | ||||||
| DAILY EDIT REPORT Servicing: Investor Accounting A report that Freddie Mac sends to notify you of any discrepancies or “edits” with your loan-level transactions. | ||||||
| DATE & TIME (Assigned, Assessed or Requested) Loan Product Advisor® The date and time the following action occurred:
| ||||||
| DATE OF SELLER'S OFFER The Guide glossary The date the Seller accepts the applicable Purchase Contract in Loan Selling Advisor®. | ||||||
DDLPI The related ULDD Data Point name is Last Paid Installment Due Date. | ||||||
| DEBT RATIO Loan Product Advisor® Borrower’s monthly debt payment-to-income ratio (Total Debt/Total Income). | ||||||
| DEED OF TRUST Servicing: Default Management A type of security instrument in which the borrower conveys a trust to hold property to a third party (trustee) as security for the lender, with the condition that the trustee will reconvey the title upon payment of the debt and conversely, will sell the property and pay the debt in the event of a default by the owner. | ||||||
| DEED Servicing: Default Management A written document (signed, delivered and usually recorded) conveying (transferring) title to real estate from one owner to another. | ||||||
| DEFECT RATE Discover Gold Through Quality Best Practices The portion of mortgages from an entire portfolio that are not of investment quality and would not meet the requirements of the Seller, investor or mortgage insurer. When referring to Freddie Mac, this rate would be the proportion of mortgages which we would require to be repurchased due to contract violations. | ||||||
| DEFICIENCY Servicing: Default Management The difference between the balance outstanding on a loan and proceeds from the foreclosure sale of the property. | ||||||
| DEFICIENCY JUDGMENT Servicing: Default Management A court order obtained by a lender to pay the balance owed on a loan when the proceeds from the foreclosure sale are insufficient to pay off the loan. | ||||||
| DEFICIENCY RIGHTS Servicing: Default Management The rights of the Note holder to recover from the borrower through subsequent legal action the portion of the total debt secured by a mortgage that is not satisfied by the proceeds from the foreclosure sale. | ||||||
| DELINQUENCY The Guide glossary Delinquency occurs when all or part of the Borrower's monthly installment of principal, interest and, where applicable, Escrow is unpaid after the due date.
| ||||||
| DELINQUENT Servicing: Default Management The borrower has failed to make timely payments of principal, interest, or escrow in accordance with the terms of the mortgage agreement. | ||||||
| DELINQUENT INTEREST AMOUNTS Servicing: Investor Accounting Aggregate figures consisting of uncollected interest reported to us for the current cycle, and uncollected interest reported to us in previous cycles that remains uncollected as of the current cutoff. | ||||||
| DELINQUENT INTEREST PAYMENT Servicing: Default Management The portion of scheduled interest payments that contractually past due on the existing mortgage (with interest being accrued at the existing note rate). | ||||||
| DELIVERY DATE The Guide glossary With respect to the sale of Mortgages to Freddie Mac, 'Delivery Date' means the date when all of the following have been completed:
| ||||||
| DEMAND DEPOSIT ACCOUNT The Guide glossary For Custodial Accounts, a deposit account from which funds may be withdrawn by the Servicer/depositor immediately and without any advance notice of intended withdrawal or any restrictions on the frequency of withdrawals. | ||||||
| DESIGNATED CUSTODIAN The Guide glossary The Document Custodian is a Document Custodian with which Freddie Mac has contracted to provide custodial services for Seller/Servicers that do not have a Form 1035 Custodial Agreement executed with another Document Custodian, or for Seller/Servicers selling Mortgages to Freddie Mac through Cash-Released XChangeSM. Freddie Mac has verified that each Designated Custodian meets the eligibility requirements for Document Custodians described in Section 2202.2. | ||||||
| DETACHED CONDOMINIUM PROJECT The Guide glossary A Condominium Project comprised solely of Detached Condominium Units. | ||||||
| DETACHED CONDOMINIUM UNIT The Guide glossary A Condominium Unit that is completely detached from any other unit in a Condominium Project. A Detached Condominium Unit can be in a Detached Condominium Project or in a Condominium Project that contains a mixture of attached, detached, or semi-detached units. | ||||||
| DETAILED ADJUSTMENT REPORT Servicing: Investor Accounting Examples of other billings: RTC minority principal interest billings; SCRA; chargeoffs. You will not receive this report if you did not incur adjustments or other billings this accounting cycle. | ||||||
| DISASTER, MAN-MADE Servicing: Default Management A catastrophe of man-made origin, such as a flood caused by a broken dam, a nuclear power plant accident or toxic waste spill. | ||||||
| DISASTER, NATURAL Servicing: Default Management A catastrophe of natural origin, such as a earthquake, hurricane, tornado, or flood. | ||||||
| DISCREPANCY Discover Gold Through Quality Best Practices The state when information in a file or set of documents does not show internal consistency or some information is lacking. | ||||||
| DISTRIBUTED SOFTWARE The Guide glossary Software or software-related documentation that is not specifically covered by the terms of a separate agreement between Freddie Mac and the Seller/Servicer. | ||||||
| DIVIDENDS/INTEREST Loan Product Advisor® Funds paid to owners of stocks or bonds by issuer of stock or bond. | ||||||
| DOCUMENT CHECKLIST Loan Product Advisor® Checklist that lists the minimum documents to be included in the loan file. This list is specific to the loan data. If you change the loan data, the Doc. Checklist may change after you resubmit. | ||||||
| DOCUMENT CUSTODIAN The Guide glossary An institution that accepts delivery of, verifies and maintains the original Notes and assignments of the Security Instruments. As the context requires, references to “Document Custodian” include the Designated Custodian(s). A Document Custodian must satisfy the eligibility requirements described in Section 2202.2 and must enter into a Tri-Party Agreement as described in Section 2202.3 with the Seller/Servicer and Freddie Mac. A Seller/Servicer may act as its own Document Custodian, as described in Section 2202.2, or a Document Custodian may be an Affiliate of the Seller/Servicer or an independent third-party entity, including a Designated Custodian. | ||||||
| DOCUMENT PREPARATION Quality Control and Fraud Best Practices The process of creating documents that will be used to legally transfer title and/or perfect a lien position. | ||||||
| DOCUMENTATION LEVEL Loan Product Advisor® The category listed on the Full Feedback Certificate that defines the minimum level of documentation that must be obtained for the mortgage. Documentation Levels are:
| ||||||
| DOCUMENTATION LEVEL The Guide glossary The Documentation Level shown on the Feedback Certificate indicates the minimum level of documentation acceptable for a Loan Product Advisor® Mortgage. | ||||||
| DOWN PAYMENT Loan Product Advisor® Cash paid at the time of purchase towards the full purchase price of the property. The Guide glossary The difference between the purchase price and the First Lien amount on a purchase transaction. | ||||||
DUE DATE Initial Interest Mortgages are not eligible for sale to Freddie Mac. | ||||||
| DUE-DILIGENCE REVIEW Discover Gold Through Quality Best Practices A type of review in which the quality of a mortgage portfolio is assessed. | ||||||
| DUE-ON-SALE CLAUSE Servicing: Default Management A type of acceleration clause calling for a debt under a mortgage or deed of trust to be due in its entirety upon an unauthorized transfer of ownership of the security property. |
| EARLY COLLECTIONS Servicing: Servicer Performance Profiles For Servicer Performance Profiles, criteria that measure the percentage of your active and 30-day delinquent loans that become 60 days delinquent at any point over a six-month period. | ||||||||
EARLY DELINQUENCY COUNSELING Early Delinquency Counseling is further described in Sections 9101.2(c) and 9102.4(c). | ||||||||
| EDR The Guide glossary Electronic Default Reporting, the process used by Servicers to report delinquency and default information to Freddie Mac monthly. EDR is accessed through the Freddie Mac Service Loans application. | ||||||||
| EFFECTIVE DATE OF PERMANENT FINANCING The Guide glossary The date of the closing on the Permanent Financing and the date the term of the Permanent Financing begins; or, for Construction Conversion Mortgages and Renovation Mortgages, the date when the Interim Construction Financing is deemed to be paid off or converted or modified to, and replaced by the Permanent Financing. The Effective Date of Permanent Financing is as follows:
| ||||||||
| EFFECTIVE DATE OF TRANSFER The Guide glossary For a Concurrent Transfer of Servicing, the Effective Date of Transfer is the applicable Funding Date or Settlement Date For a Subsequent Transfer of Servicing, the Effective Date of Transfer is the first calendar day of the month of the transfer, unless otherwise approved by Freddie Mac. | ||||||||
ELIGIBLE BORROWER Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. | ||||||||
| ELIGIBLE DEPOSITORY The Guide glossary A depository institution in which a Servicer must establish a Custodial Account or invest monies deposited into a Custodial Account, that meets the institutional requirements and rating requirements as found in Sections 8302.4 and 8302.5. | ||||||||
| ELIGIBLE DISASTER The Guide glossary A disaster, either man-made or natural, which results in an area being designated as an Eligible Disaster Area. | ||||||||
| ELIGIBLE DISASTER AREA The Guide glossary An area comprised of counties or municipalities that have been declared by the President of the United States to be a major disaster area where federal aid in the form of individual assistance is being made available. | ||||||||
| ELIGIBLE VETERAN Loan Product Advisor® An indication if any borrower qualifies as Veteran under VA guidelines. | ||||||||
| EMINENT DOMAIN Servicing: Default Management The taking of real estate, generally through condemnation proceedings, for the public's use. | ||||||||
| EMPLOYER ASSISTED HOMEOWNERSHIP (EAH) BENEFIT The Guide glossary Financial assistance provided to an employee from the employer pursuant to an established, ongoing and documented employer benefit program, provided (i) the employer is not an interested party (as described in Section 4204.3) and (ii) the funds were not obtained from an interested party either directly or through a third party. See Section 5501.5 for additional requirements. | ||||||||
| ENDING UPB The Guide glossary The UPB as of the end of an Accounting Cycle. | ||||||||
| EQUITY The Guide glossary The difference between the value of the Mortgaged Premises and the total dollar amount of all Mortgages and other liens secured by the Mortgaged Premises. | ||||||||
| ERRORS AND OMISSIONS INSURANCE (E&O INSURANCE) Discover Gold Through Quality Best Practices A liability insurance coverage for loss caused by errors, omissions and negligence committed by persons covered by the policy in the usual activities of a lender. Fraudulent behavior is not included. | ||||||||
| ESCROW The Guide glossary Escrow includes all funds collected to cover expenses to be paid under the Mortgage including, but not limited to, taxes, special assessments, ground rents and other charges that are or may become First Liens on the Mortgaged Premises, as well as property insurance premiums and mortgage insurance premiums. | ||||||||
| ESCROW AGENTS Discover Gold Through Quality Best Practices The person or organization having a fiduciary responsibility to both the buyer and property seller (or lender and borrower) to see that the terms of the purchase/sale (or mortgage) are carried out. Also called escrow company or escrow depository. | ||||||||
| ESCROW CUSTODIAL ACCOUNT The Guide glossary A Custodial Account into which the Servicer deposits Escrow Funds. | ||||||||
| ESCROW DISBURSEMENT CLEARING ACCOUNT The Guide glossary A deposit account established by a Servicer, at its option, specifically for the payment of all expenses payable from Escrow Funds with respect to Mortgages serviced for Freddie Mac and for others. | ||||||||
| ESCROW FUNDS The Guide glossary For Custodial Accounts, Escrow Funds are any and all funds deposited by a Servicer on a Borrower's behalf (such as buydown funds) or any and all funds remitted by a Borrower to a Servicer, to be used by the Servicer to pay, with respect to a Mortgage in which Freddie Mac has an ownership interest, such expenses as property insurance premiums, mortgage insurance premiums, property taxes, special assessments, ground rents and any other charge that is or may become a prior lien on the Mortgaged Premises. | ||||||||
| ESTABLISHED CONDOMINIUM PROJECT The Guide glossary A Condominium Project in which:
| ||||||||
| ESTIMATED CLOSING COSTS Loan Product Advisor® The dollar amount of the estimated loan fees, title fees, appraisal fees and other closing costs associated with the subject transaction excluding discount points and prepaids. | ||||||||
| ESTIMATED PREPAID ITEMS Loan Product Advisor® The dollar amount of the escrow/impound that is to be held by the lender and is to be collected at closing for future payment of taxes, insurance or other obligations on the subject property. | ||||||||
| ESTIMATED VALUE OF PROPERTY Loan Product Advisor® Borrower's statement of the subject property's value or appraised amount if available. | ||||||||
| EXCEPTION ACTIVITY Servicing: Investor Accounting Any exception to the regular monthly principal and interest payments that changes the status of the mortgage. Example: A borrower paying off their loan or a borrower reinstating their loan to an active status from foreclosure. | ||||||||
| EXCEPTION INTEREST Servicing: Investor Accounting Interest calculated at the ANY based on the current accounting cycle’s beginning UPB. Exception Interest is due for exception activity (reinstatements, payoffs, REOs and third-party foreclosure sales). There are two types of exception interest: daily and monthly. | ||||||||
| EXISTING CONDOMINIUM PROJECT The Guide glossary A Condominium Project that has been completed, and at least 90% of the total number of units have been conveyed or are under contract to the unit purchasers. 'Project completed' means that all units and common elements in the project and any master association are complete, and the project is not subject to additional phasing or annexation. | ||||||||
| EXTENDED BUYDOWN MORTGAGE The Guide glossary A Mortgage with a temporary subsidy buydown plan for which:
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| FACE VALUE Loan Product Advisor® The dollar amount of the face value of the applicable borrower's Asset Type. The face value is the par value or actual selling price of the asset or the amount the issuer contracts to repay. |
| FAIR MARKET VALUE Servicing: Default Management The estimated market value of the mortgaged premises as determined by a Broker’s Price Opinion (BPO, Form 1092) or by an appraisal report that meets the standards and requirements of the Guide. |
| FDIC; FDIC-INSURED DEPOSITORY The Guide glossary FDIC is the abbreviation for the Federal Deposit Insurance Corporation. The FDIC administers the BIF and the SAIF. An FDIC-Insured Depository is a depository institution whose deposits are insured by the FDIC. |
| FEDERAL RESERVE BANK The Guide glossary The Federal Reserve Bank means the Federal Reserve Bank of New York and/or such other Federal Reserve Bank(s) as may from time to time maintain UMBS, MBS and ARM PCs and Supers on their books and records. |
| FEEDBACK CERTIFICATE The Guide glossary The printed or printable document returned by Loan Product Advisor® that details the results of the Loan Product Advisor submission. The Feedback Certificate may include, but is not limited to:
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| FEES Servicing: Investor Accounting Fees occur when there is:
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| FEMA Servicing: Default Management The Federal Emergency Management Agency. |
FHA CASE NUMBER |
| FHA; FHA MORTGAGE The Guide glossary FHA is the Federal Housing Administration. An FHA Mortgage is a Home Mortgage that is fully insured by the FHA under Sections 203(b), 203(h) or 203(i) [Home Unsubsidized], 222 [Servicemen] or 234 [Individual Condominium Unit] of the National Housing Act, as amended. |
| FHA LENDER ID Loan Product Advisor® Number assigned by FHA to lender or broker when approved to originate FHA mortgages. |
| FHA SPONSOR ID Loan Product Advisor® The FHA Lender ID of the lender who is acting as the sponsoring wholesaler of the mortgage. |
| FHA/VA FORECLOSURE/CONVEYANCE (exception code 72) Servicing: Investor Accounting A property with an FHA or VA mortgage goes into foreclosure and is not sold to a third party at the foreclosure sale. |
| FHFA The Guide glossary The Federal Housing Finance Agency, Freddie Mac’s regulator and conservator. |
| FIDELITY INSURANCE Discover Gold Through Quality Best Practices A liability insurance coverage for loss caused by dishonest or fraudulent acts committed by persons covered by the policy. |
| FINAL ASSIGNMENT Loan Product Advisor® Assignor (usually a broker, but sometimes a lender) selects a wholesaler or wholesaler/MSP pair to receive exclusive Modify access on the current loan transaction. The assignor's Modify access is changed to View capability for the current and all future versions of the loan transaction. |
| FINAL DELIVERY DATE The Guide glossary For Mortgages sold to Freddie Mac under the fixed-rate Guarantor, WAC ARM Guarantor and MultiLender programs, Final Delivery Date is the date set forth in the Loan Selling Advisor® by which all of the following must be completed:
See Section 6203.8, 6204.8 or 6205.8 for additional instructions and requirements for wire transfer instructions and submitting Form 996E, Warehouse Provider Release and Transfer. The Final Delivery Date is also referred to as the Final Delivery Due Date in the Loan Selling Advisor, and the two terms can be used interchangeably. |
| FINAL LTV Loan Product Advisor® The final loan-to-value (LTV) ratio is provided by Loan Product Advisor by dividing the First Lien Mortgage amount by the lesser of the property's purchase price or appraised value. |
| FINALING THE ACCOUNTING CYCLE Servicing: Investor Accounting The time period when Freddie Mac “closes its books” (or finals the accounting cycle), approximately two to three business days before the end of the month after processing a loan-level transaction for every mortgage you service for us. After we 'final,' we send you monthly reconciliation reports that summarize the activity processed at Freddie Mac for your portfolio. |
| FINANCED DISCOUNT POINTS Loan Product Advisor® The dollar amount of discount points to be financed on FHA no cash-out refinance. |
| FINANCED FUNDING FEE (Also Known As: VA Funding Fee Financed) Loan Product Advisor® Dollar amount of the VA Funding Fee that is financed as part of the loan amount. |
| FINANCED MIP (Also Known As: MIP Funding Fee Financed) Loan Product Advisor® Dollar amount of the FHA up-front Mortgage Insurance Premium that is financed as part of the loan amount. |
| FINANCED PERMANENT BUYDOWN MORTGAGE The Guide glossary A Mortgage for which the Borrower has permanently reduced the interest rate by financing discount points in the loan amount. |
| FINANCING COSTS The Guide glossary Discount points, loan fees, commitment fees, origination fees and/or similar fees associated with a Mortgage transaction. |
FIRST AMORTIZING PAYMENT DATE Initial Interest Mortgages are not eligible for sale to Freddie Mac. |
| FIRST COMPLETE BORROWER RESPONSE PACKAGE The Guide glossary The first complete Borrower Response Package received in connection with a Mortgage secured by a Primary Residence on or after January 10, 2014. |
| FIRST LIEN The Guide glossary Any lien that meets both of the following requirements:
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FIRST MORTGAGE P&I |
| FIRST-OF-THE-MONTH DUE DATE Servicing: Investor Accounting A mortgage with payments that are due on the first day of the month. The majority of mortgages originated have a payment due date on the first of the month. |
| FIRST PAYMENT DUE DATE Servicing: Investor Accounting Usually the first payment due is on the first day of the calendar month two months after the origination month. The maximum number of days allowed between mortgage origination and the first payment due date is 62.
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| FIRST-TIME HOMEBUYER The Guide glossary An individual who meets all of the following requirements:
The related ULDD Data Point name is Borrower First Time Homebuyer Indicator. For purposes of meeting the requirement in the first bullet above:
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| FIXED-RATE GUARANTOR CONTRACT The Guide glossary An optional Purchase Contract entered into by the Seller to sell eligible Mortgages to Freddie Mac under the fixed-rate Guarantor program. |
| FLOOR RATE Servicing: Balloon/Resets For Balloon/Resets, the lowest Note Rate acceptable to Freddie Mac. The floor rate is utilized when analyzing a borrower’s eligibility for a Loan Modification or a Step Rate Balloon Loan Modification. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| FORECASTED MONTHLY PRINCIPAL AND INTEREST Servicing: Servicing System For loans serviced through the Freddie Mac Servicing application, Freddie Mac's forecast or estimate of the next monthly principal and interest payment due based on the Mortgage’s unpaid principal balance and amortization schedule. |
| FORECLOSURE Servicing: Default Management A legal procedure in which collateral property is sold in an attempt to satisfy the outstanding debt of a mortgage. |
| FRAUD Discover Gold Through Quality Best Practices Intentional misrepresentation of the truth to deceive another person or entity. |
FREDDIE MAC-OWNED CONVERTED MORTGAGE Convertible ARMs are not eligible for sale to Freddie Mac. |
| FULL PAYMENT The Guide glossary Full Payment is the monthly payment of principal and interest sufficient to amortize fully the remaining principal balance of the adjustable-rate Mortgage (ARM) at the then-applicable Note Rate over the remaining Mortgage term. |
| FULL RELEASE Loan Product Advisor® Final Assigned wholesaler or MSP relinquishes the ability to View or Modify the loan data. Assignor (usually a broker) receives the loan data as originally assigned and can assign to another wholesaler or wholesaler/MSP pair. |
FUNDING DATE For Pledged Mortgages purchased by Freddie Mac, the date on which Freddie Mac disburses the Purchase Proceeds to the Warehouse Lender. |
| FUNDING DETAIL REPORT Servicing: Investor Accounting A loan-level backup record of the purchase summaries. For each sale you receive one or more Funding Detail report(s). |
| GAAP Servicing: Investor Accounting Abbreviation for Generally Accepted Accounting Principles. |
| GENERAL PARTNER Discover Gold Through Quality Best Practices The co-owner of a venture who is liable for all debts and other obligations of the venture and/or the management and operation of the partnership. The general partner controls the business and can take actions that are binding on other partners. |
| GIANT OFFERING CIRCULAR SUPPLEMENT The Guide glossary A disclosure document that supplements the Giant PC Offering Circular and contains information about the PCs and/or Giant PCs in a Giant PC Pool as of its Settlement Date. |
| GIANT PC The Guide glossary A single-class security issued pursuant to the Giant PC Agreement that receives principal and interest from its underlying assets, which are PCs or other Giant PCs. |
| GIANT PC OFFERING CIRCULAR The Guide glossary The offering circular in effect on the Date of Seller's Offer that relates to the Mortgage being purchased and the Giant PC being sold in the MultiLender Swap. The Giant PC Offering Circular is the Offering Circular for Giant and other Other Pass-Through Certificates. Each Giant PC Offering Circular incorporates any supplements to that offering circular, as well as supplements to the PC Offering Circular for each underlying PC, in effect on the Date of Seller's Offer. |
| GIANT PC POOL The Guide glossary A discrete group of PCs, backed by Mortgages and/or other Giant PCs, that is identified by a CUSIP Number and a PC Pool Number in the records maintained by Freddie Mac. |
GOLD PC® Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| GPI Servicing: Investor Accounting Global Payments Incorporated. |
| GROSS MORTGAGE MARGIN (Also Known As: Margin) Loan Product Advisor® The number of percentage points added to the current index value to establish the new note rate at each interest change date. |
| GUARANTEE FEE (Required Spread, Guarantee Fee) Servicing: Investor Accounting The fee Freddie Mac keeps for guaranteeing payment to our investors. It is the difference between the ANY due and the PC rate we pay out. The required spread will be stated in your contract. The required spread is only used in calculating the new ANY for mortgages in the ARM Guarantor Program. |
| GUARANTEED TIMELY PRINCIPAL AND INTEREST ACCOUNTING METHOD Servicing: Investor Accounting An accounting method where remittances are due either on the ARC day specified in the purchase contract, or on the First Tuesday of the month. Interest and principal is calculated the same using either the Scheduled/Scheduled or the Guaranteed Timely P& I method.
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| GUIDE Freddie Mac’s Single-Family Seller/Servicer Guide, as it may be modified, amended or supplemented from time to time. |
| GUIDE PLUS ADDITIONAL PROVISIONS The Guide glossary Written amendments or supplements to the Guide provided to Seller by Freddie Mac through AllRegs® and amended by Freddie Mac from time to time. |
| GUT REHABILITATION The Guide glossary The rehabilitation of an existing building(s) to its shell. The rehabilitation involves all new mechanical equipment (such as heating, exhaust, insulation, roofing, plumbing and electrical). The renovations include new interiors, fixtures, appliances, and flooring for individual units and common areas. |
| HAZARD DISTRESSED BPO The Guide glossary A Hazard Distressed BPO is conducted to determine the value of a damaged property. |
| HAZARD INSURANCE (for Current or Proposed) Loan Product Advisor® Insurance coverage that provides compensation to insured in case of property damage or loss (e.g., renters, homeowners, fire, earthquake, flood, etc. insurance). |
| HAZARDOUS SUBSTANCE The Guide glossary Any hazardous or toxic substance, pollutant, waste or contaminant, designated as such under any federal, State or local law. |
| HELOC ACTUAL CURRENT BALANCE Loan Product Advisor® The dollar amount, if any, of any outstanding balance as a result of proceeds drawn from a Home Equity Line Of Credit (HELOC). The HELOC current balance must be included in the Subordinate Amount field. |
| HELOC HIGH CREDIT AMOUNT Loan Product Advisor® The maximum dollar amount of the total Home Equity Line of Credit (HELOC) on the subject property, regardless of whether or not the borrower has accessed the amount. |
| HIGHER-PRICED COVERED TRANSACTION (HPCT) The Guide glossary A first-lien Mortgage secured by a Primary Residence, a second home or Investment Property not exempt from ability-to-repay requirements under the Truth-in-Lending Act and its implementing regulations that has an annual percentage rate (APR) of 1.5% or more above the average prime offer rate (APOR) for a comparable transaction as of the rate lock date. APR and APOR are both defined in Regulation Z of the Board of Governors of the Federal Reserve System. The APOR is published at least weekly by the Federal Reserve Board and is derived from pricing terms obtained from a survey of prime mortgage lenders. For purposes of this Guide, a Higher-Priced Covered Transaction that is secured by a Primary Residence is also a Higher-Priced Mortgage Loan. |
| HIGHER-PRICED MORTGAGE LOAN (HPML) The Guide glossary A first-lien Mortgage secured by a Primary Residence that has an annual percentage rate (APR) of 1.5% or more above the average prime offer rate (APOR) for a comparable transaction as of the rate lock date. APR and APOR are both defined in Regulation Z of the Board of Governors of the Federal Reserve System. The APOR is published at least weekly by the Federal Reserve Board and is derived from pricing terms obtained from a survey of prime mortgage lenders. An HPML does not include a second home or Investment Property. |
| HOME EQUITY LINE OF CREDIT (HELOC) The Guide glossary Secondary financing that consists of a revolving line of credit secured by a junior lien to a Mortgage delivered to Freddie Mac. |
| HOME IMPROVEMENT LOAN (HIL) The Guide glossary A HIL is a Home Mortgage to finance permanent improvements for energy conservation, solar installation, rehabilitation, modernization or addition. |
| HOME INSPECTION Servicing: Default Management An inspection of the property conducted by a certified member of the American Society of Home Inspectors to determine the interior and exterior condition of the property. |
| HOME MORTGAGE The Guide glossary A Mortgage secured by a First Lien on real estate on which there is located a structure designed principally for residential use by one to four families. A conventional Mortgage is a Home Mortgage other than a Home Mortgage guaranteed or insured by the federal government. A conforming Mortgage is a Home Mortgage with an original loan amount that does not exceed the applicable loan limits specified in the Guide. |
| HOMEOWNERS ASSOCIATION The Guide glossary An association comprised of unit owners that maintains the Common Elements in a Condominium Project or a Planned Unit Development (PUD) for the benefit of the unit owners. In a Condominium Project, the association has no ownership interest in the Common Elements. In a PUD, the association owns the Common Elements. |
| HOME POSSIBLE® MORTGAGE The Guide glossary A Mortgage that offers underserved qualified Borrowers flexible underwriting, low down payment options and other special underwriting features. Home Possible Mortgages must be originated in accordance with Chapter 4501. |
| HOMEOWNERS ASSOCIATIONS DUES (for Current or Proposed) Loan Product Advisor® Payments to a Homeowner's Association to maintain property and improvements within a planned unit development. |
| HOMEOWNERSHIP EDUCATION CERTIFICATE The Guide glossary A certificate that identifies the homeownership education program the Borrower attended and the dates and times the Borrower attended the program sessions. Seller may use the Homeownership Education Certificate form developed by Freddie Mac or any form that contains comparable information. |
| HOUSING RATIO Loan Product Advisor® The borrower’s monthly primary housing expense-to-income ratio calculated by Loan Prospector by dividing primary housing expenses by total income. |
| HUD The Guide glossary The U.S. Department of Housing and Urban Development. |
| HVE®(HOME VALUE EXPLORER®) The Guide glossary Home Value Explorer, one of Freddie Mac's Home Value Suite of Automated Valuation Model (AVM) tools that generates an estimate of property value. |
| IAM Servicing: Investor Accounting Abbreviation for Investor Accounting Manager |
| IMMINENT DANGER OF DEFAULT Servicing: Default Management A circumstance where if, based upon the facts and circumstances of the particular mortgage and using prudent business judgment, it appears more than likely than not that the borrower will default on his or her mortgage payments within the next 12 months. |
| INACTIVATION Servicing: Investor Accounting Discontinues reporting and remitting interest to Freddie Mac on mortgages in foreclosure. |
| INDEBTEDNESS The Guide glossary With respect to any Pledged Mortgage, the amount or obligation under the Mortgage Warehousing Agreement to be paid to the Warehouse Lender by or on behalf of the Seller. |
| INDEBTEDNESS-TO-VALUE RATIO (LTV) Servicing: Default Management The unpaid principal balance, accrued interest, escrow advances and expenses, divided by the probable sales price (“as-is” value with a 90-day marketing time frame) of the property as established by a broker’s price opinion (BPO) from an approved Freddie Mac vendor. |
| INDEMNIFICATION PROVISIONS Discover Gold Through Quality Best Practices Provisions that provide for the obligation or duty of one party to compensate the insured for any loss or damage a second party has incurred or may incur by acting at the request or for the benefit of the first party. |
| INDEX (Index Code) The Guide glossary, For adjustable-rate Mortgages (ARMs), a fluctuating economic indicator specified in the Note, the value of which is used to adjust the Note Rate periodically. |
| INDEX CODE (Also Known As: Index) Loan Product Advisor® For adjustable-rate Mortgages (ARMs), a fluctuating economic indicator specified in the Note, and the value of which is used to adjust the Note rate periodically. |
| INDICATOR SCORE The Guide glossary The one Underwriting Score identified to represent the eligibility of the Mortgage for the product offering. The related ULDD Data Point names are Loan Level Credit Score Selection Method Type and Loan Level Credit Score Value. |
| INDIVIDUAL DEVELOPMENT ACCOUNT (IDA) The Guide glossary A savings account designated by the Borrower for the purpose of purchasing a residence and into which the Borrower has regularly deposited funds which are matched by funds from An Agency. If the Agency matching funds are to be used as a source of funds, the objective for which the IDA was established and the vesting requirements must be satisfied. |
INELIGIBLE BORROWER Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| INFILE (Also Known as: Infile Credit Report) Loan Product Advisor® An infile credit report is issued by a credit repository and contains 'as is' information, which is information that has not been updated or reverified as a result of a credit inquiry. Loan Product Advisor® AUS uses infile credit reports in its assessment. The infile credit report is not stored by Loan Product Advisor® AUS. It is recommended that you print the infile credit report immediately after a credit assessment by selecting Credit Infiles from the results list. Then activate the screen for printing by clicking in the infile report area and selecting Print. |
| INITIAL ADJUSTMENT PERCENTAGE Loan Product Advisor® For Loan Product Advisor®, the percentage by which the temporary subsidy buydown rate adjusts at the initial payment adjustment. For instance, if the interest rate will increase one percent after the first year and a half, enter 1 in this field. |
| INITIAL ASSIGNMENT Loan Product Advisor® Assignor selects a wholesaler to receive View access to current loan data and future transactions. Assignor exclusively retains Modify access to the loan data. |
| INITIAL CAP The Guide glossary For adjustable-rate Mortgages (ARMs), the maximum increase or decrease in the Note Rate on the first Interest Change Date, expressed in percentage points. The related ULDD Data Point names are Per Change Maximum Decrease Rate Percent and Per Change Maximum Increase Rate Percent. |
| INITIAL INDEX VALUE Loan Product Advisor® Value of the applicable index as of the Note date or as of Loan Prospector AUS submission date if loan is not yet closed. |
INITIAL INTERESTSM MORTGAGES Initial Interest Mortgages are not eligible for sale to Freddie Mac. |
| INITIAL LTV Loan Product Advisor® The ratio of the First Lien Mortgage amount to the property's purchase price or appraised value as provided by Loan Product Advisor. |
| INITIAL PERIOD The Guide glossary For adjustable-rate Mortgages (ARMs), the period from the Note Date of the Mortgage until the first Interest Change Date, expressed in months. The related ULDD Data Point name is Initial Fixed Period Effective Months Count. |
| INSURANCE, MAINTENANCE, TAXES and MISCELLANEOUS Loan Product Advisor® The total insurance, taxes, maintenance, and miscellaneous expenses for the referenced property in Real Estate Owned in which the borrower has an ownership interest and/or for which the borrower is obligated. |
| INTEGRATED CONSTRUCTION CONVERSION DOCUMENTATION (INTEGRATED DOCUMENTATION) The Guide glossary Documentation of the Construction Conversion Mortgage or Renovation Mortgage when the lender providing the Permanent Financing is the construction lender, the loan instruments stipulate the terms of the Interim Construction Financing and the Permanent Financing, and the Mortgage automatically converts to Permanent Financing upon completion of construction with no change in any of the terms of the financing (except that the principal balance may be reduced). A new Note, Security Instrument or Construction Modification Agreement is not executed. |
| INTEREST-BEARING DEPOSIT ACCOUNT The Guide glossary For Custodial Accounts, a deposit account that pays short-term interest rates on the deposited balance, such as savings accounts or money market deposit accounts. This definition does not include money market mutual fund accounts. |
| INTEREST CHANGE DATE The Guide glossary For adjustable-rate Mortgages (ARMs), each date, as established in the Note, on which any adjustment in the Note Rate is effective. The related ULDD Data Point names are Per Change Rate Adjustment Effective Date and Next Rate Adjustment Effective Date. |
INTEREST ONLY PERIOD Initial Interest Mortgages are not eligible for sale to Freddie Mac. |
| INTEREST RATE (Also Known As: Initial Interest Rate) Loan Product Advisor® The initial interest rate payable under the Note. |
| INTEREST RATE RANGE Loan Selling Advisor The number of days between the date you take out a cash contract and the date you must completely fulfill the contract including delivery of all documentation as well as funding. You may enter any 51 basis point range as long as the beginning and ending interest rates are divisible by one-eighth. |
| INTERIM CONSTRUCTION FINANCING The Guide glossary For Construction Conversion Mortgages and Renovation Mortgages, the short term financing that provides the Borrower with funds to:
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| INTERIM PROCESSING Servicing: Investor Accounting Event driven reporting and remitting that is completed throughout the month in response to certain mortgage activities, such as payoffs and third-party foreclosure sales. |
| INTERVENING ASSIGNMENT The Guide glossary An assignment of a Security Instrument:
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| INVENTORY PAST STANDARD SEVERITY Servicing: Servicer Performance Profiles For Servicer Performance Profiles, criteria that measure the average aging of loans in your delinquency inventory in days (not by percentage) based on Freddie Mac standards. |
| INVESTMENT PROPERTY The Guide glossary A 1- to 4-unit residential property, other than a Primary Residence or second home, that is:
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| INVESTMENT PROPERTY MORTGAGE The Guide glossary A Mortgage secured by an Investment Property. |
| INVESTMENT-QUALITY MORTGAGE Discover Gold Through Quality Best Practices A mortgage that is made to a borrower from whom repayment of the debt can be expected, is adequately secured by real property and is originated in accordance with the requirements of the purchase documents. |
| INVESTOR Servicing: Investor Accounting Someone who buys whole or part interest in a mortgage. The investor is entitled to their share of the cash flow over the life of the mortgage. Freddie Mac is the final investor if we purchase a mortgage and then hold it in our portfolio. However, the majority of our mortgages are packaged into securities and sold to outside investors. In this case, we are not the final investor. |
| INVESTOR ACCOUNTING Servicing: Investor Accounting The process of accounting for mortgages that you service for Freddie Mac. Investor accounting includes three major activities: cash management, investor reporting and custodial reconciliation. |
| INVESTOR ACCOUNTING MANAGER (IAM) Servicing: Investor Accounting A web-based investor accounting application available on FreddieMac.com. |
| INVESTOR REPORTING Servicing: Investor Accounting & Custodial Accounting The process of reporting to Freddie Mac on a monthly basis, all activity that has taken place in your cash management system. As part of your investor reporting process, report the Amount Due to Freddie Mac for each transaction using loan-level reporting. Freddie Mac sends you a report summarizing the portfolio-level Amount Due on the Monthly Account Statement. |
| JUDICIAL FORECLOSURE Servicing: Default Management Foreclosure process in which court action must be taken for the foreclosure to be accomplished. |
| JUNIOR LIEN Servicing: Default Management A lien or claim against real estate that is secondary or inferior to the first lien. |
| KEY NUMBER (Loan Product Advisor® (LP) AUS Key Number) The Guide glossary A unique identifier assigned to a Mortgage by Loan Product Advisor when the Mortgage is first submitted to Loan Product Advisor. The alphanumeric Key Number is returned to the Seller on the Feedback Certificate and is used by the Seller and Freddie Mac to identify an individual Mortgage. In addition to the Key Number, each Loan Product Advisor submission will receive a Transaction Number. Key Number is also referred to as “Loan Prospector® (LP) AUS Key Number” and “LP Key Number.” These three terms can be used interchangeably. |
LAND TRUST
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| LAND TRUST MORTGAGE The Guide glossary A Mortgage secured by property for which the title is held by a Land Trust. |
| LAND USE RESTRICTIONS The Guide glossary When used in connection with an Affordable Second®, restrictions imposed by an Agency on the Borrower's use and/or sale of the Mortgaged Premises. |
| LAST FEEDBACK CERTIFICATE The Guide glossary The Feedback Certificate returned from the last submission to Loan Product Advisor® prior to the Delivery Date. |
| LAST PAYMENT RECEIVED DATE (LPRD) Servicing: Investor Accounting The actual date you received the borrower’s payment. Example: You received the borrower’s May payment on May 8th. The note has a 1st of the month due date. Report a DDLPI of 5/1/xx and a LPRD of 5/8/xx for the May accounting cycle. |
| LATE COLLECTIONS Servicing: Servicer Performance Profiles For Servicer Performance Profiles, criteria that measure the loans that inflow to 60 days delinquent at any point during a 12-month period and later produce a loss. |
| LATE COLLECTIONS EARLY WARNING CHECK Servicing: Servicer Performance Profiles For Servicer Performance Profiles, a report that gives you a preview of your collections performance through a six month period. The report lists the loans that have no definite results recorded (indeterminates), and the loans that have failed. |
| LATE REMITTANCE INTEREST REIMBURSEMENT FEE Servicing: Investor Accounting A fee assessed when you fail to comply with the required remittance procedures. If the remittance funds are not available to us by the remittance due date, we assess an interest reimbursement fee. |
| LATE REPORTED NON-COMPLIANCE FEE Servicing: Investor Accounting A fee assessed when you fail to report a paid off mortgage by the 5th business day of the month following the month that the payoff date occurred in. |
| LAWFUL PERMANENT RESIDENT ALIEN The Guide glossary A non-U.S. citizen holding acceptable evidence of permanent residency issued by the Immigration and Naturalization Service (INS). |
| LEGAL DESCRIPTION Loan Product Advisor® Description of the subject property, including, lot block, and subdivision information. |
| LIBOR INDEX The Guide glossary For adjustable-rate Mortgages (ARMs), the London Interbank Offered Rate (LIBOR) Index is the average of London interbank offered rates for six-month or one-year U.S. dollar-denominated deposits in the London market, as published in the print edition of The Wall Street Journal. |
| LIEN Servicing: Default Management A claim of a creditor on the property as security for a debt. |
| LIEN PRIORITY Loan Product Advisor® The lien on the property for which the loan applies. |
| LIFE CAP The Guide glossary For adjustable-rate Mortgages (ARMs), the number of percentage points, which when added to the initial Note Rate yields the Lifetime Ceiling. |
| LIFETIME CEILING The Guide glossary For adjustable-rate Mortgages (ARMs), the maximum Note Rate to which an ARM may adjust over the life of the loan. The Lifetime Ceiling is determined by adding a Life Cap to the initial Note Rate. The related ULDD Data Point name is Ceiling Rate Percent. |
| LIFETIME FLOOR The Guide glossary For an adjustable-rate Mortgages (ARMs), the minimum Note Rate to which an ARM may ever adjust; the Lifetime Floor must equal the Margin. The related ULDD Data Point name is Floor Rate Percent. |
| LIMITED BUYDOWN MORTGAGE The Guide glossary A Mortgage with a temporary subsidy buydown plan for which:
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| LIMITED COMMON ELEMENTS The Guide glossary Portions of Common Elements reserved for use by one or more unit owners but not all unit owners. Limited Common Elements are defined in the Project Documents, and may include, but are not limited to, balconies or patios serving a single unit, assigned parking spaces or storage bins. |
| LIVING TRUST The Guide glossary An inter vivos revocable trust that meets all of the following requirements:
Living Trusts also may be referred to as “inter vivos trusts” or “inter vivos revocable trusts.” |
| LOAN AMOUNT Loan Product Advisor® Amount to be financed by the borrower including financed PMI. For conventional loans, this is the total amount of the mortgage being financed. For FHA/VA loans, this is the total amount of the mortgage being financed including, if applicable, any Mortgage Insurance Premium (MIP) or VA Funding Fee. |
| LOAN HISTORY Servicing: Investor Accounting & Custodial Accounting The record between you and the borrower. It reflects all payment activity for the mortgage. |
| LOAN LEVEL AMOUNT DUE Servicing: Investor Accounting & Custodial Accounting The liability owed to Freddie Mac for each loan. (Once a month you report the amount due for each loan you service for Freddie Mac. Amount Due = Principal due + Interest due). |
| LOAN LEVEL DISCREPANCIES Servicing: Investor Accounting A report of the discrepancies (referred to as 'edits') resulting from comparison of your loan-level transactions to data in our database. Freddie Mac notifies you of any discrepancies (edits) on Daily Edit Reports the business day after we receive for any loan-level transaction. |
| LOAN LEVEL MISSING REPORT Servicing: Investor Accounting A report that lists mortgages you did not report to us this accounting cycle and mortgages with unresolved edits on the Edits To Be Cleared report. Once our system accepts a transaction for a mortgage, it drops off the report except for:
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| LOAN LEVEL TRANSACTION Servicing: Default Management A monthly accounting transaction sent to us, communicating the amount of principal and interest due to us for each mortgage in the Servicer’s portfolio. The transaction is used to report normal monthly installments of principal and interest, as well as exception activity (mortgages paid-in-full, foreclosures, etc.) |
| LOAN MODIFICATION Servicing: Default Management A written agreement permanently changing one or more of the original terms of the note. |
| LOAN MODIFICATION AGREEMENT Servicing: Default Management The written agreement executed by the borrower and the Servicer which establishes the terms of a loan modification. |
| LOAN ORIGINATOR The Guide glossary For purposes of providing the Loan Originator information on the Uniform Residential Loan Application (Form 65) and delivering the ULDD Data Point Loan Originator Type only, Loan Originator shall have the same meaning as the term defined in section 1503 of the Secure and Fair Enforcement for Mortgage Licensing Act (as may be amended from time to time). The current SAFE Act defines a Loan Originator as an individual who:
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| LOAN ORIGINATION COMPANY The Guide glossary For purposes of providing the Loan Originator information on the Uniform Residential Loan Application (Form 65) and at delivery, a Loan Origination Company is the company that employs the Loan Originator or that the Loan Originator represents as an independent contractor. |
| LOAN PROCESSING STAGE Loan Product Advisor® Description of the point in the loan origination process at which the loan is being submitted to Loan Product Advisor. If a loan's status is between two points, the value for the Loan Processing Stage is the point that most recently occurred. |
| LOAN PRODUCT The Guide glossary Loan Product as used in Loan Selling Advisor® means Mortgage Product as that term is defined in the Glossary. |
| LOAN PRODUCT ADVISOR® The Guide glossary Freddie Mac’s automated underwriting system. Loan Product Advisor is a successor System to Loan Prospector. Any Guide reference to Loan Product Advisor shall be deemed to include a reference to Loan Prospector. |
| LOAN PRODUCT ADVISOR ASSESSMENT EXP. DATE Loan Product Advisor® Specifies the date the credit will expire (120 days from the date credit information was first requested for conventional, FHA and VA Mortgages - including Construction Conversion/Renovation Mortgages; or 180 days from the date credit information was first requested for FHA and VA new construction Mortgages). |
| LOAN PROSPECTOR® ID Loan Product Advisor® The unique identifier used for the loan throughout its duration in Loan Product Advisor. |
| LOAN PRODUCT ADVISOR® MORTGAGE The Guide glossary A Mortgage that is submitted to Loan Product Advisor and complies with all of the requirements of Chapter 5101 of the Guide. |
| LOAN PURCHASE STATEMENT Servicing: Investor Accounting A summary record of the total sale. For each sale you receive one or more Loan Purchase Statement(s). |
| LOAN RECONCILIATION DIFFERENCE REPORT (LRDR) Servicing: Investor Accounting A summary of every transaction our system did not immediately accept during the cycle due to a reporting discrepancy or simulation of a transaction. “No data in error” message appears when you have no transactions for this report. You should already be aware of each discrepancy on this report from your Daily Edit reports. |
| LOAN REGISTRATION NUMBER Loan Product Advisor A tracking number assigned by a lender to identify the loan for pipeline management. |
| LOAN SELLING ADVISOR® The Guide glossary Freddie Mac’s proprietary web-based system for purchasing Mortgages including, but not limited to, all visual content displayed on screens and pages, system processes, system rules, terms and conditions, privacy policy and instructions. Loan Selling Advisor is a successor System to the Selling System. Loan Selling Advisor® |
| LOAN-TO-VALUE RATIO (LTV) Loan Product Advisor® The loan-to-value (LTV) ratio is obtained by dividing the First Lien Mortgage amount by the lesser of the property's purchase price or appraised value of the mortgaged premises. (First Lien Mortgage Amount / (the lesser of the Purchase Price or Appraised Value). |
| LONG-TERM FORBEARANCE AGREEMENT Servicing: Default Management A written agreement between you and the borrower (or his or her estate) to reduce or suspend monthly payments for a period up to 12 months from the date of the agreement. Long-term forbearance is intended for situations where the property has been damaged from a natural or man-made disaster, a lawsuit is pending which may jeopardize our lien position, the borrower is deceased and the estate is in probate, or the borrower is experiencing an involuntary inability to pay due to an outstanding major medical claim. |
| LOOKBACK PERIOD Servicing: Investor Accounting The number of calendar days you count back from the interest change date to determine the current index. The Guide glossary For adjustable-rate Mortgages (ARM), the date on which the Index value used to calculate the new Note Rate is determined. The Lookback Period is stated in the Note and is generally expressed as the number of days preceding the Interest Change Date or as the first Business Day of the month immediately preceding the Interest Change Date. The related ULDD Data Point names are Interest And Payment Adjustment Index Lead Days Count and Interest Adjustment Index Lead Days Count. |
| LP AUS KEY (Also Known as: Loan Product Advisor AUS Key, LP Key Number, and Loan Product Advisor Key) Loan Product Advisor® A unique identifier assigned to a mortgage by Loan Product Advisor when the mortgage is first submitted to Loan Product Advisor. The LP AUS Key is returned to the Seller with Loan Product Advisor results. |
| LTV Abbreviation for Loan to Value Ratio. Loan Product Advisor® The loan-to-value (LTV) ratio provided by Loan Product Advisor is obtained by dividing the First Lien Mortgage amount by the lesser of the property's purchase price or appraised value of the mortgaged premises. |
| MAKE AND MODEL Loan Product Advisor® The make and model of the borrower's vehicle disclosed as an asset. |
| MAKE-WHOLE PREFORECLOSURE SALE Servicing: Default Management A sale in which the net sales proceeds plus the estimated mortgage insurance claim and/or borrower contribution (cash or certified funds) will satisfy the total indebtedness. |
| MANUALLY UNDERWRITTEN MORTGAGE The Guide glossary A Mortgage for which the Seller makes the determination regarding Borrower creditworthiness and excessive layering of risk that is one of the following:
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| MANUFACTURED HOME The Guide glossary A one-unit dwelling built on a permanent chassis in accordance with the National Manufactured Construction and Safety Standards Act as promulgated by the Department of Housing and Urban Development (HUD) and affixed to a permanent foundation. |
| MANUFACTURED HOME PURCHASE AGREEMENT The Guide glossary An agreement between the Manufactured Home purchaser and the retailer or dealer from whom the Manufactured Home is purchased. The Manufactured Home Purchase Agreement must be either the manufactured housing purchase agreement required to be used under applicable State law or if none is required, the Jenkins Business Forms Manufactured Housing Form 500 or a State-specific Form 500 or a substantially equivalent form. |
| MARGIN The Guide glossary For adjustable-rate Mortgages (ARM), the number of percentage points that is added to the current Index value to establish the new Note Rate at each Interest Change Date. The related ULDD Data Point name is Margin Rate Percent. |
| MARKETABLE TITLE Servicing: Default Management Title to property which is free from liens or other legal objections and is readily acceptable to local attorneys and knowledgeable real estate investors. |
| MASTER AGREEMENT The Guide glossary An agreement between Freddie Mac and the Seller providing the terms for origination, underwriting, delivery and any other relevant terms under which Freddie Mac will purchase eligible Mortgages over a fixed period of time. In order to obtain pricing terms and to sell eligible Mortgages to Freddie Mac, the Seller will also need to obtain one or more Pricing Identifiers under the Master Agreement. Nothing contained in a Master Agreement will obligate Freddie Mac to purchase or Seller to sell Mortgages until one or more Pricing Identifiers have been obtained by the Seller. |
| MASTER ASSOCIATION The Guide glossary A homeowners association (HOA) in a project that is comprised of representatives of the HOA from smaller, specific projects or areas within the overall project. |
| MATURITY DATE Servicing: Servicing System The date on which payment of an obligation is due in full. |
| MAXIMUM ANNUAL MORTGAGE PURCHASE AMOUNT The Guide glossary The maximum aggregate dollar amount of Home Mortgages that Freddie Mac will purchase from a Seller in any calendar year. The Maximum Annual Mortgage Purchase Amount applies only to those Sellers for whom such a limit has been established pursuant to Section 1201.4. (The Maximum Annual Mortgage Purchase Amount does not apply to purchases of Multifamily Mortgages by Freddie Mac.) |
| MAXIMUM MASTER AGREEMENT AMOUNT The Guide glossary The total aggregate unpaid principal balance (UPB) of all Home Mortgages, if any, that can be delivered under the terms of the Master Agreement. |
| MBS The Guide glossary An MBS is a mortgage-backed security issued by Freddie Mac pursuant to the relevant Master Trust Agreement, representing a beneficial ownership interest in a specified Pool. |
| MERGED CREDIT TYPE (Single/Joint Merged with) Loan Product Advisor® Indicates the type of credit report requested. Changing from two single to one joint borrower report is considered a new request with an additional charge. |
| MERS® The Guide glossary MERS (Mortgage Electronic Registration System, Inc.), is a cooperative undertaking by and for the entire mortgage industry. This system is an electronic registry specifically created for tracking the ownership of individual Mortgages, Servicing rights and security interests and used by MERS Members. |
| MERS® MEMBER The Guide glossary A Seller/Servicer who has executed the MERS Membership Agreement with MERS. |
| MI The Guide glossary A mortgage insurer approved by Freddie Mac. |
| MI PREMIUM TERM COVERAGE Loan Product Advisor® An indication that the initial premium is paid monthly, annually in one lump sum, or is not applicable. |
| MIN The Guide glossary The Mortgage Identification Number that is assigned to a Mortgage that is registered in MERS®. This number remains with the Mortgage throughout its life. |
| MINIMUM ASSESSMENT FEEDBACK (MAF) The Guide glossary A type of feedback message included on the Feedback Certificate. The MAF will advise the Seller of the type of appraisal report required. |
| MINIMUM CONTRACT SERVICING SPREAD The Guide glossary Selected by the Seller at time of commitment or when the Seller enters into a Purchase Contract under Pricing Identifier Terms, and is the least amount of interest income that must be retained by the Servicer as compensation for Servicing all the Mortgages delivered pursuant to a specific Purchase Contract. The amount selected by the Seller must be no less than the Minimum Servicing Spread. The Servicing Spread applicable to any individual Mortgage delivered pursuant to a specific Purchase Contract may be greater than or equal to, but not less than, the Minimum Contract Servicing Spread selected by the Seller for that Purchase Contract. |
| MINIMUM GROSS YIELD The Guide glossary The sum of the Required Net Yield plus the Minimum Contract Servicing Spread. |
MINIMUM SERVICING SPREAD Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
MINORITY-OWNED BUSINESS ENTERPRISE Minority means any Black (or African) American, Native American (or American Indian), Hispanic (or Latino) or Asian American. |
| MODIFICATION CONSTRUCTION CONVERSION DOCUMENTATION (MODIFICATION DOCUMENTATION) The Guide glossary Documentation of the Construction Conversion Mortgage or Renovation Mortgage when the lender providing the Permanent Financing uses a Construction Conversion Modification Agreement to modify one or more or the terms (other than a reduction in the principal balance) of Interim Construction Financing to the terms of the Permanent Financing. A Construction Conversion Modification Agreement is executed and a new Note is executed in certain circumstances; the Security Instrument may be modified, but a new Security Instrument is not executed. |
| MODIFICATION EFFECTIVE DATE The Guide glossary For purposes of a modification processed under Chapters 9204 through 9210, the Modification Effective Date is the first day of the month following the end of the Trial Period, which is also the first payment due date of the modified Mortgage. In the event the Servicer utilizes the option to include an interim month following the Trial Period, then the Modification Effective Date and the due date of the first modified payment will be the first day of the second month following the end of the Trial Period. The effective date of the modification interest rate change occurs one month prior to the first payment due date, as the terms of the modified Mortgage are established so that the first payment due under the modified Mortgage pays interest in arrears that accrued during the month prior to the first payment due date. |
| MODIFIED LOAN-TO-VALUE (LTV) RATIO Servicing: Default Management The current unpaid principal balance of the existing mortgage plus any capitalized amounts (when allowed) divided by the current market value. |
| MODIFY RELEASE Loan Product Advisor® Final Assigned wholesaler or MSP returns Modify capability on the loan transaction to the assignor, but maintains the ability to View the loan data. The assignor can only assign the loan back to the releasing wholesaler or wholesaler/MSP pair. |
MONTHLY ACCOUNT STATEMENT (MAS) The MAS lists for the accounting cycle:
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| MONTHLY INCOME Loan Product Advisor® Total stable monthly income for the borrower that can reasonably be expected to continue for at least the next three years. Stable monthly income includes the following:
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| MONTHLY INTEREST Servicing: Investor Accounting One full month of interest calculated at the ANY, based on the current accounting cycle’s beginning UPB. It is due for all mortgages that were active at the beginning of the current accounting cycle. |
| MONTHLY PROCESSING Servicing: Investor Accounting Cyclical reporting and remitting completed every month at the same time. The accounting cycle determines the timing for monthly reporting. The timing for monthly remittances is determined by the remittance option selected when the mortgage was sold to Freddie Mac. |
| MONTHLY RECONCILIATION REPORT Servicing: Investor Accounting A summary report of the various activity processed during the accounting cycle on your Freddie Mac portfolio. |
| MONTHS LEFT TO PAY Loan Product Advisor® The number of months the borrower must make payments in order to satisfy the identified liability. |
| MORTGAGE The Guide glossary A loan secured by a lien on real estate held in fee simple or on an acceptable leasehold estate. |
| MORTGAGE BROKER The Guide glossary A person or entity that specializes in loan originations, receiving a commission (from a Correspondent or other lender) to match Borrowers and lenders. The Mortgage Broker performs some or most of the loan processing functions such as taking loan applications, or ordering credit reports, appraisals and title reports. Typically the Mortgage Broker does not underwrite or service the loan and generally does not use its own funds for closing; however a Mortgage Broker could fund a Mortgage on a lender's behalf and such a Mortgage will be considered, and should be delivered as, a Mortgage Broker third party origination Mortgage. The Mortgage is generally closed in the name of the lender who commissioned the Mortgage Broker's services. |
| MORTGAGE CREDIT CERTIFICATE (MCC) The Guide glossary A certificate issued by an authorized State or local housing finance agency that documents a federal income tax credit awarded to a qualified First-Time Homebuyer and/or low- or moderate-income homebuyer. |
| MORTGAGE INSURANCE Loan Product Advisor® Insurance which protects mortgage lenders against loss in the event of default by the borrower. Investor Accounting—Investor Reporting Federal or private insurance that protects mortgage lenders against default risk. Private carriers provide mortgage insurance to protect lenders against full or partial losses in the event of a foreclosure and deficiency. The carrier must be a Freddie Mac-approved mortgage insurer. |
| MORTGAGE INSURER (MI) Servicing: Balloon/Resets A corporation that issues private mortgage insurance and is approved by Freddie Mac to insure Mortgages owned in whole or in part by Freddie Mac. |
| MORTGAGE PAYMENTS Loan Product Advisor® Total monthly payment for all mortgages and liens secured by the property in which the borrower has an ownership interest and/or for which the borrower is obligated. |
| MORTGAGE PRODUCT The Guide glossary Any one of the specific types of Mortgages for which the applicable Purchase Documents may provide specific eligibility, Credit Fees in Yield and other terms. |
| MORTGAGE SERVICE PROVIDER The Guide glossary An entity or individual engaged to handle or perform, for a Seller or Correspondent, part of the mortgage application processing, underwriting, funding or postclosing functions, but not any activities related to obtaining an application for a wholesale origination. This entity or individual is typically paid on a fee basis for services performed, with the payment of fees not being contingent on Mortgage approval or closing. Mortgage Service Providers include:
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| MORTGAGE TYPE Loan Product Advisor® Indicates if this loan is conventional, FHA or VA. |
| MORTGAGE WAREHOUSING AGREEMENT The Guide glossary A contract between the Warehouse Lender and the Seller pursuant to which the Warehouse Lender lends or advances funds to the Seller in exchange for a continuing lien and security interest in, or conveyance of an ownership or other interest in, Mortgages. |
| MORTGAGED PREMISES The Guide glossary The land and improvements subject to the lien of a Mortgage. |
| MORTGAGES PURCHASED IN WHOLE OR IN PART The Guide glossary Mortgages Purchased in Whole have been purchased in their entirety by Freddie Mac. Mortgages Purchased in Part are Mortgages in which Freddie Mac has purchased or retained a participation interest. |
| MSP ASSIGNMENT Loan Product Advisor® Assignor (always a Lender) selects a Mortgage Service Provider (MSP) to share 'Modify' access on the loan data. |
| MSP/NOTP NAME Loan Product Advisor® A mortgage service provider (MSP), entity, or individual who provides contract underwriting, contract processing, and data integrity services for lenders. (NOTP is a non-originating third party.) |
| MSP/NOTP NUMBER Loan Product Advisor® Freddie Mac-assigned number for non-originating third parties (NOTPs), Mortgage Service Providers (MSPs) that access Loan Product Advisor directly. |
| MULTIFAMILY MORTGAGE The Guide glossary A Mortgage on real estate on which there is located a structure designed principally for residential use by more than four families. |
| MULTILENDER SWAP CONTRACT The Guide glossary An optional Purchase Contract entered into by the Seller to sell certain conventional fixed-rate Mortgages to Freddie Mac under the MultiLender Swap program. |
| NCUSIF; NCUSIF-INSURED DEPOSITORY The Guide glossary The abbreviation for the National Credit Union Share Insurance Fund. An NCUSIF-Insured Depository is a depository institution whose deposits are insured by the NCUSIF. |
| NEGATIVE ADJUSTMENTS Servicing: Investor Accounting Deducted (shown as negative) amounts that need to be withdrawn from the bank account, or that you are waiting for Freddie Mac to process a debit on the Monthly Account Statement. Following are examples of transactions that you would carry as a negative adjustment:
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| NEGATIVE AMORTIZATION The Guide glossary The amount (i) by which the monthly interest calculated at the Note Rate exceeds the Borrower's scheduled monthly interest payment to the Servicer, and (ii) which is added to the unpaid principal balance (UPB) of the Mortgage. |
| NEGATIVE AMORTIZATION % LIMIT Loan Product Advisor® Maximum loan-to-value (LTV) allowed for a negatively amortizing mortgage. |
| NEGATIVE AMORTIZATION TYPE Loan Product Advisor® An indication if it is possible for the loan to have negative amortization on an Adjustable Rate Mortgage. |
| NEGOTIATED PAYOFF Servicing: Investor Accounting A common negotiated payoff remittance is an accelerated payoff remittance cycle (PARC) where payoff proceeds are due 2, 3 or 4 business days following the exception date. Payoff remittances are due within five business days following the exception date unless you have a negotiated payoff remittance due date allowed in your contract. |
| NET LIFETIME CEILING The Guide glossary For adjustable-rate Mortgages (ARM), the Net Lifetime Ceiling is the Lifetime Ceiling minus the Minimum Contract Servicing Spread. |
| NET MARGIN The Guide glossary For adjustable-rate Mortgages (ARM), the Margin minus the Minimum Contract Servicing Spread. |
| NET NOTE RATE The Guide glossary For adjustable-rate Mortgages (ARM), the Note Rate minus the Minimum Contract Servicing Spread. |
| NET PURCHASE PRICE Loan Product Advisor® The Net Purchase price is equal to the Gross Purchase Price minus any Sales Concessions or excess Financing Concessions. |
| NET RENTAL INCOME (Monthly Income) Loan Product Advisor® Monthly rental income received on a property after the PITI and operating expenses have been deducted. |
| NET RENTAL INCOME (REO Property) Loan Product Advisor® The total net income received for the referenced property in Real Estate Owned in which the borrower has an ownership interest and/or for which the borrower is obligated. |
| NET YIELD ACCOUNTING METHOD (also known as Scheduled/Actual) Servicing: Investor Accounting An accounting method used by most mortgages to:
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| NEW CONDOMINIUM PROJECT The Guide glossary A Condominium Project in which:
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| NEWLY FUNDED MORTGAGE (also known as New Funding) Servicing: Investor Accounting A mortgage mortgage you sold to Freddie Mac during the current accounting cycle. |
| NEWLY-CONVERTED CONDOMINIUM PROJECT Servicing: Investor Accounting A project with prior use for which the completion of the conversion is no more than three years before the date of the Mortgage application. The project typically also meets the definition of a New Condominium Project. |
| NONCREDIT PAYMENT REFERENCE The Guide glossary A continuing obligation, such as rent, utilities and insurance, that requires periodic payments at least quarterly. The related ULDD Data Point name is Credit Reference Type (Loan Level). |
| NON-EXCEPTION ACTIVITY Servicing: Investor Accounting Regular monthly activity of principal and interest payments made according to the terms and conditions of the security instrument executed by the borrower. Examples:
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| NON-GUT REHABILITATION The Guide glossary The rehabilitation of an existing building(s) that does not involve substantial rehabilitation of the building(s) or individual units or the substantial replacement of mechanical equipment. |
| NON-LOAN PRODUCT ADVISOR® MORTGAGE The Guide glossary A Mortgage that was:
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| NON-OCCUPANT BORROWER HOUSING EXPENSE Loan Product Advisor® Total monthly housing expenses for all non-occupant borrowers on the loan application. The monthly housing expense is the sum of the following monthly charges on the non-occupant borrowers' primary residence:
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| NON-OCCUPANT BORROWER NON-HOUSING DEBT Loan Product Advisor® Total monthly non-housing debt for all non-occupant borrower(s) on the application. The monthly non-occupant, non-housing debt is the sum of the following:
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| NOTE The Guide glossary A Note is the instrument evidencing the indebtedness secured by a Security Instrument. With respect to document custody, unless the context requires otherwise, the term 'Note' may include any power of attorney or any applicable modifying instrument, such as a modification, a conversion agreement or an assumption of indebtedness and release of liability agreement. |
| NOTE DATE The Guide glossary The date of the Note. |
| NOTE RATE The Guide glossary The interest rate payable under the Note. For adjustable-rate Mortgages (ARM), the Note Rate may adjust from time to time in accordance with the terms of the Note. The term Interest Rate may be used to refer to Note Rate. |
| NOTICE OF ACCELERATION The Guide glossary A written notice sent to the Borrower notifying the Borrower that:
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| NOTICE OF DEFAULT The Guide glossary A written notice sent to the Borrower stating that the Borrower is in violation of the terms of the Note and/or Security Instrument. The Notice contains a time limit within which the Borrower must cure or remedy the violation. When issued because of a delinquent monthly payment, this notice is usually sent out when the payment is 30 days delinquent. |
| NUMBER OF SUBMISSIONS Loan Product Advisor® An indication the cumulative number of times the loan has been submitted to Loan Product Advisor AUS by both the originator and those assigned the loan. |
| NUMBER OF UNITS Loan Product Advisor® Indicates the number of individual family dwelling units on the subject property. If the number of units is greater than one, make sure the property type coincides. |
| ODD DUE DATE Servicing: Investor Accounting A mortgage with payments that are due on any day other than the first day of the month is referred to as an odd due date mortgage. |
| OFFER LETTER Servicing: Balloon/Resets The written offer you must send to a Borrower who has not responded to the Required Notice and whose Balloon/Reset Mortgage is covered by mortgage insurance. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| OFFERING IDENTIFIER Loan Product Advisor® Code used by Loan Product Advisor to identify the specific type of product offering. |
| ORIGINAL COST Loan Product Advisor® Original cost of the property at the time of acquisition. |
| ORIGINAL REMITTANCE CYCLE Servicing: Investor Accounting A remittance option where funds are due to Freddie Mac the first Tuesday of the calendar month following the accounting cutoff. |
| ORIGINATION DATE The Guide glossary The Note Date. |
| OTHER ASSETS The Guide glossary For use in Section 2101.1, the 'Other Assets' line items, less any other asset items that have previously been deducted. For example, if some of the 'Other Intangibles' line items are included in 'Other Assets,' they must not be provided on the 'Other Assets' line item. |
| OTHER BORROWER FUNDS The Guide glossary Funds derived from eligible sources, as described in Section 5501.3(c), and paid by the Borrower in connection with the property purchase or Mortgage financing. |
| OTHER CREDIT AMOUNT Loan Product Advisor® The dollar amount of the Other Credit Type (Purchase Credit Type) related to the loan application. |
| OTHER CREDIT TYPE Loan Product Advisor® Specifies the general categories of credit on the transaction exclusive of financing. |
| OTHER FINANCING P&I (for Current or Proposed) Loan Product Advisor® Amount of a periodic principal and interest payment (P&I) of a first mortgage on real estate. Principal is the monthly payment that reduces the remaining balance of the mortgage, and interest is the fee charged for borrowing the money. |
| OTHER INTANGIBLES The Guide glossary For use in Section 2101.1, copyrights, trademarks, patents and all Other Intangibles included on the Seller/Servicer's balance sheet 'Other Intangibles' line item. |
| OTHER MORTGAGE DOCUMENTS The Guide glossary For warehouse lending arrangements, Other Mortgage Documents are the title insurance policies, property insurance policies, Escrow agreements and all other agreements and documents relating to the Servicing or sale of, or the granting of a security interest in, the Mortgage. Other Mortgage Documents do not include the Note and the Security Instrument. |
| OVERLAPPING CYCLES Servicing: Investor Accounting Cycles where during the last two weeks of each month, Freddie Mac processes transactions transmitted for two different cycles. Ensure you report the correct cycle date with your transmissions to avoid errors. Example: From March 16 until approximately March 27, Freddie Mac processes transactions for both the March and April cycles. The March cycle transactions are the monthly reporting for the March activity. The April cycle transactions are interim reporting, such as payoffs with an exception date of March 16 or later. |
| OVERTIME Loan Product Advisor® Additional hourly compensation paid for work beyond the usual and customary work period. |
| OWN/RENT (for Current Address or Former Address) Loan Product Advisor® An indication of whether the borrower owns or rents the current place of residence or former place of residence. |
| OWNER-OCCUPANT The Guide glossary An individual who meets all of the following requirements:
A beneficiary of a Land Trust who is an individual and who:
is deemed to be an Owner-Occupant, if the Land Trust is listed as an owner of record (by deed) and the trustee of the Land Trust executs the Security Instrument. For purposes of this definition, if a borrower is a Living Trust that is an owner of record (by deed), an Underwritten Settlor who resides in the Mortgaged Premises, using it as a primary residence, and who has executed the Note and acknowledged the Security Instrument is deemed to be an owner-occupant. |
| OWNER OF RECORD The Guide glossary The entity or individual that appears in the public records as the legal owner. |
| P&I DETERMINATION DATE The Guide glossary The 15th calendar day of the month (or next Business Day if the 15th calendar day falls on a weekend or holiday). |
| P&I DRAFT DATE The Guide glossary The second Business Day following the P&I Determination Date. |
| PAPER ADJUSTMENT Servicing: Investor Accounting Adjustments that clear in the same cycle, or in a later cycle, after we process the corresponding transaction. |
| PARTICIPATION LOAN Servicing: Investor Accounting A mortgage where two or more investors (participants) own a partial interest. Mortgages that are 100 percent participation are known as whole loans. |
| PARTNERSHIP Discover Gold Through Quality Best Practices A legally defined form of business ownership. A firm owned by two or more persons who agree to share, not necessarily equally, in the profits and losses of the business. No stock is issued. The individual partners pay personal income tax on their share of income from the partnership. |
| PAYMENT CHANGE DATE The Guide glossary For adjustable-rate Mortgages (ARM), each date, as established in the Note, on which the monthly payment reflects any Note Rate adjustment. The related ULDD Data Point name is First Rate Change Payment Effective Date. |
| PAYMENT DUE DATE Servicing: Investor Accounting The effective date stated on the note on which the payment is due every month. |
| PAYMENT RECEIVED DATE Servicing: Investor Accounting The date on which the payment is actually received from the borrower. |
| PAYOFF Servicing: Investor Accounting The satisfaction of a mortgage due to:
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| PAYOFF DATE The Guide glossary The date the Servicer receives the amount necessary to pay off the Mortgage. |
| PAYOFF DRAFT DATE The Guide glossary Two Business Days after the Payoff Determination Date. |
| PAYOFF DETERMINATION DATE The Guide glossary The date that Freddie Mac determines the amount it will draft based on Servicer reporting. For payoffs reported within two Business Days of the payoff, the Payoff Determination Date will be two Business Days before the Payoff Draft Date. Payoffs reported three or more Business days after the payoff are late and the Payoff Determination Date will be the same day the payoff was successfully reported.. |
| PC The Guide glossary A Mortgage Participation Certificate security issued pursuant to the PC Agreement, representing a beneficial ownership interest in a specified PC Pool. The term 'PC' includes a Gold PC® and a WAC ARM PC, unless the context indicates otherwise. |
| PC COUPON The Guide glossary The interest rate, expressed as an annual percentage, which is passed through monthly to a security investor. For WAC ARM PCs, the PC Coupon is derived by calculating a weighted average of the Note Rates of the underlying Mortgages, and then subtracting the Credit Fees in Yield and the Minimum Contract Servicing Spread. For Giant PCs, the PC Coupon is the same fixed interest rate as the underlying assets, and is generally in a multiple of 0.500%. |
| PC ISSUE DATE The Guide glossary The first day of the month in which settlement for the related PC Pool or Giant PC Pool occurs. |
| PC LIFETIME CEILING The Guide glossary For WAC ARM PCs, the weighted average of the Lifetime Ceilings of the underlying Mortgages, minus the Credit Fees in Yield and the Minimum Contract Servicing Spread. |
| PC MARGIN The Guide glossary For WAC ARM PCs, the weighted average of the Margins of the underlying Mortgages, minus the Credit Fees in Yield and the Minimum Contract Servicing Spread. |
PC OFFERING CIRCULAR Each PC Offering Circular incorporates any supplements to that offering circular in effect on the Date of Seller's Offer or sale. |
| PC POOL The Guide glossary The PC Pool is a discrete group of Mortgages identified by a CUSIP Number and a PC Pool Number in the records maintained by Freddie Mac. |
| PC POOL NUMBER The Guide glossary A unique numeric or alphanumeric designation used to identify a PC Pool or a Giant PC Pool. The first two characters of a PC Pool Number indicate the PC Prefix. |
| PC PREFIX The Guide glossary A two-character numeric or alphanumeric designation of the PC Pool Number that Freddie Mac uses to indicate terms and underlying Mortgage types of the PC Pool or the Giant PC Pool. |
| PENALTIES Servicing: Investor Accounting Additional costs to be paid that occur when there is:
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| PERCENT OF COVERAGE Loan Product Advisor® Percent of the loan amount to be insured. |
| PERCENTAGE OF AGED APPLIED TRANSACTIONS IN ERROR Servicing: Servicer Performance Profiles For Servicer Performance Profiles, criteria that give you the percentage of erroneous transactions that appear on the Loan Reconciliation Difference Report (LRDR) for three consecutive cycles. |
| PERCENTAGE OF APPLIED TRANSACTIONS IN ERROR Servicing: Servicer Performance Profiles For Servicer Performance Profiles, criteria that include all loans in sections 1, 3 and 4, and loans aged 30 days or greater in section 2 on the Loan Reconciliation Difference Report for three cycles |
PERIODIC CAP The related ULDD Data Point names are:
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| PERMANENT FINANCING The Guide glossary For Construction Conversion Mortgages and Renovation Mortgages, the long term financing used to replace the Interim Construction Financing that becomes effective after construction or renovation is completed and the Interim Construction Financing has been paid off, converted or modified. Permanent Financing begins on the Effective Date of the Permanent Financing. |
| PITI Servicing: Default Management The acronym for items included in the monthly mortgage payment: principal, interest, taxes, and insurance. |
| PITIAS PAYMENT The Guide glossary When used in connection with a Home Affordable Modification ProgramSM (HAMP®) modification or Freddie Mac Flex Modification®, the PITIAS payment is the payment that reflects the monthly housing expense on a Mortgage and is the sum of the following:
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| PLANNED UNIT DEVELOPMENT (PUD) The Guide glossary A real estate project in which each unit owner holds title to a lot and the improvements on the lot, and the homeowners association (HOA) holds title to the Common Elements. The unit owners have a right to the use of the Common Elements, and pay a fee to the HOA to maintain the Common Elements for their benefit. For the purpose of this definition, a Condominium Project is not a PUD. |
| PLEDGED MORTGAGES The Guide glossary Mortgages, with respect to which the Seller has granted a continuing lien and security interest in, or conveyed an ownership or other interest to, the Warehouse Lender, in either case pursuant to a Wearhouse Agreement. |
| PMI, MIP, FUNDING FEE Loan Product Advisor® Dollar amount paid for Private Mortgage Insurance, Mortgage Insurance Premium or VA funding fee. |
| PMI, MIP, FUNDING FEE FINANCED Loan Product Advisor® Dollar amount of the Private Mortgage Insurance, Mortgage Insurance Premium or VA funding fee that is financed as part of the loan amount. Enter 0 if this amount is not financed. |
| POINT Servicing: Servicing System An amount equal to one percent of the Principal Balance of a Mortgage. |
| POOL The Guide glossary A Pool is a discrete group of Mortgages identified by a CUSIP Number and a Pool Number in the records maintained by Freddie Mac. |
| POOL NUMBER The Guide glossary A Pool Number is a unique numeric or alphanumeric designation used to identify a Pool or a Supers Pool. |
| POOL SUPPLEMENT The Guide glossary A disclosure document that supplements the UMBS/MBS Offering Circular or the ARM PC Offering Circular and contains information about the Mortgages in a PC Pool as of Settlement Date. |
| POSITIVE BALANCES Servicing: Investor Accounting Add (show as positive) amounts that need to be deposited to the bank account, or that you are waiting for us to process a credit for on the Monthly Account Statement. Following are examples of transactions you would carry as a positive adjustment:
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| POST-PETITION PAYMENTS Servicing: Default Management Payments owed after the bankruptcy petition date are post-petition payments. Post-petition payments are the borrower’s regular mortgage payments. |
| PREFIX The Guide glossary A Prefix is a two-character numeric or alphanumeric designation that Freddie Mac uses to indicate terms and underlying Mortgage types of a Pool or a Supers Pool. The Prefix is presented separately from the Pool Number of the related Pool or Supers Pool. |
| PREMIUM FINANCING The Guide glossary Funds the lender derives from an increase in the interest rate on the Mortgage and the corresponding sale of the Mortgage at a premium. These funds may be used by the lender to pay Borrower's Closing Costs, Financing Costs and Prepaid/Escrows but may not be used to fund a temporary subsidy buydown plan on a 'no cash-out' refinance Mortgage. The related ULDD valid value is Premium Funds. |
| PREMIUM SOURCE Loan Product Advisor® Indicates if the mortgage insurance payments are to be paid by the borrower or the lender. |
| PREPAIDS/ESCROWS The Guide glossary Prepaid interest, prepaid real estate taxes and Escrows, initial or renewal mortgage insurance premiums and Escrows, hazard or other insurance premiums, homeowners association fees and Escrows associated with a Mortgage transaction. |
| PREPAYMENT PENALTY MORTGAGE The Guide glossary A Mortgage with respect to which the Borrower is, or at any time has been, obligated to pay a designated penalty in the event of certain prepayments of principal. |
| PRE-PETITION PAYMENTS Servicing: Default Management Amounts owed prior to the bankruptcy petition date to bring the mortgage current, including, but not limited to, arrearages, late charges, escrow fees, and foreclosure expenses, are pre-petition payments, also referred to as plan payments. |
| PRESENT HOUSING EXPENSE Loan Product Advisor® The total monthly housing expense for all borrowers on the loan application. The monthly housing expense is the sum of the following monthly charges on the borrowers' primary residence:
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| PRICING IDENTIFIER The Guide glossary A Pricing Identifier is a number (or such other designation that Freddie Mac may select) that identifies an agreement providing the terms under which Freddie Mac will purchase eligible Mortgages over a fixed period of time. In certain instances, the Pricing Identifier may be designated in the Loan Selling Advisor® as “None”. |
| PRICING IDENTIFIER EFFECTIVE DATE The Guide glossary The Pricing Identifier Effective Date is the date identified in Pricing Identifier Terms upon or after which a Seller may begin to sell Mortgages to Freddie Mac under the Pricing Identifier Terms. Pricing Identifier Effective Date is also known as PI Effective Date. |
| PRICING IDENTIFIER EXPIRATION DATE The Guide glossary The Pricing Identifier Expiration Date is the expiration date of Freddie Mac’s purchase commitment under a Seller’s Pricing Identifier Terms. Pricing Identifier Expiration Date is also known as PI Expiration Date. For Guarantor, WAC ARM Guarantor or MultiLender Swap transactions, the Pricing Identifier Expiration Date is the last date upon which the Seller may settle such transactions entered into under the Pricing Identifier Terms. For Cash transactions, the Pricing Identifier Expiration Date is the last date upon which the Seller may sell Mortgages to Freddie Mac under the Contracts. The Pricing Identifier Expiration Date is also known as the PI Expiration Date. |
| PRICING IDENTIFIER TERMS The Guide glossary Pricing Identifier Terms are terms associated with a Pricing Identifier under which the Seller may sell Mortgages to Freddie Mac. Pricing Identifier Terms include all Purchase Contracts including Master Agreements. |
| PRIMARY RESIDENCE The Guide glossary A residential property physically occupied by an owner as the principal home domicile. Among the criteria the Seller should consider in evaluating whether a property is a principal home domicile are the following:
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| PRINCIPAL The Guide glossary A Principal, for purposes of Freddie Mac's policy concerning the exclusion of certain persons from participating in transactions or doing business, directly or indirectly, with Freddie Mac, may be:
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| PRINCIPAL AND INTEREST CUSTODIAL ACCOUNT The Guide glossary A Custodial Account, into which the Servicer deposits Principal and Interest Payments due to Freddie Mac. |
| PRINCIPAL AND INTEREST CUSTODIAL ACCOUNT WORKSHEET Servicing: Investor Accounting A worksheet (Form 59) used to reconcile your P&I account. No line items can be added or deleted from Form 59, although you can transfer the form to a spreadsheet (Excel for example). The three sections of the worksheet are:
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| PRINCIPAL AND INTEREST DISBURSEMENT CLEARING CUSTODIAL ACCOUNT The Guide glossary A Custodial Account established by a Servicer, at its option, specifically for drafting remittance funds due to Freddie Mac. The Servicer must deposit Principal and Interest Payments into the account immediately before remitting them to Freddie Mac. |
| PRINCIPAL AND INTEREST PAYMENTS The Guide glossary For Custodial Accounts, Principal and Interest Payments include all of the following:
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| PRINCIPAL BALANCE CORRECTION (often referred to as Negative PR) Servicing: Investor Accounting A correction that occurs when the Ending Unpaid Principal Balance (EUPB) is higher than the Beginning Unpaid Principal Balance (BUPB) for reasons other than negative amortization or loan modification. |
| PRINCIPAL DUE (also called Principal Reduction or PR) Servicing: Investor Accounting The difference between the Beginning Unpaid Principal Balance (BUPB) and the Ending Unpaid Principal Balance (EUPB) for the current accounting cycle. |
| PROCESSING Discover Gold Through Quality Best Practices The preparation of a mortgage application and collection of supporting documents for underwriting. |
| PROJECT DOCUMENTS The Guide glossary The term Project Documents for a project and any Master Association refers to any and all documents that pertain to the following:
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| PROPERTY Servicing: Balloon/Resets The mortgaged premises; the mortgaged premises are the land and improvements thereon subject to the lien of the Mortgage. |
| PROPERTY DISPOSITION Loan Product Advisor® The borrower's intended disposition of each property in which the borrower has an ownership interest and/or for which the borrower is obligated. |
| PROPERTY INSPECTION ALTERNATIVE (PIA) The Guide glossary Loan Product Advisor Minimum Assessment Feedback (MAF) message specified on the Feedback Certificate indicating that a Mortgage may be originated without an appraisal or inspection of the Mortgaged Premises. |
| PROPERTY TO BE HELD IN Loan Product Advisor® Specifies the intended property ownership rights for the subject property. |
| PROPERTY TYPE Loan Product Advisor® Structure type of the subject property. |
| PROPERTY VALUATION DISCLOSURE FORM Loan Product Advisor® Printable document that is returned by Loan Product Advisor and provides proprietary property valuation information The Property Valuation Disclosure Form includes:
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PROPOSED HOUSING (PITI--Principal, Interest, Taxes and Insurance) Calculating monthly housing expense: To calculate the PITI, add the following together for the property being financed:
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| PUBLICLY TRADED CORPORATIONS Discover Gold Through Quality Best Practices A corporation whose stock is traded on a stock exchange and can be purchased by anyone. The Securities and Exchange Commission regulates publicly traded corporations. |
| PURCHASE CONTRACT The Guide glossary An agreement between the Seller and Freddie Mac covering the purchase of a specific dollar amount of Mortgages, the Seller's obligation to deliver such Mortgages on a mandatory or optional basis, and the delivery period. The Purchase Contract may be a:
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| PURCHASE CONTRACT DATE OF ACCEPTANCE The Guide glossary The date Freddie Mac accepts the Seller's offer as stated in a Purchase Contract. Freddie Mac inserts this date on the Purchase Contract. |
| PURCHASE CONTRACT EXPIRATION DATE The Guide glossary The date on which the Purchase Contract expires. |
| PURCHASE DOCUMENTS The Guide glossary The Purchase Documents are the following:
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| PURCHASE ELIGIBILITY Loan Product Advisor® Indicates whether, and under what conditions, Freddie Mac will purchase the assessment as submitted to Loan Product Advisor. |
| PURCHASE PROCEEDS The Guide glossary The amounts payable, which may be cash, UMBSTM, MBS, ARM PCs or SupersTM, to a Warehouse Lender by Freddie Mac on behalf of the Seller for Freddie Mac's purchase, in whole or in part, of Pledged Mortgages. |
| PURCHASE RESTRICTION Loan Product Advisor® Message(s) returned on the Full Feedback Certificate that indicate(s) the reason(s) the transaction may be ineligible for purchase by Freddie Mac. |
| PURPOSE OF LOAN Loan Product Advisor® The purpose for which the borrower will use the loan. |
| PURPOSE OF REFINANCE Loan Product Advisor® Identifies the type of refinance mortgage. |
Q |
| No Entries |
| RATING AGENCIES Discover Gold Through Quality Best Practices Companies that analyze the strength of other companies and assign a comparative rate to each company evaluated. Examples would include Moody's Investors Services, Standard and Poor's Financial Institution Rating Service, Cates Consulting Analysis, Sheshunoff Information Services, and IDC Financial Publishing, Inc. |
| RECAPTURE The Guide glossary A provision in certain IDA programs that requires repayment of the matched funds to the Agency providing the matching funds under certain specified circumstances. |
| RECOURSE Servicing: Default Management A condition of sale of a mortgage to Freddie Mac, by which a seller bears all risks and costs of a borrower default, including foreclosure costs. |
| REDEMPTION PERIOD Servicing: Default Management The time allowed by law, in some states, during which a borrower may reclaim foreclosed property by paying the full amount of the foreclosure sales price, including fees and interest. Some states further extend this right to the junior lienholder or other parties. |
| REINSTATEMENT Servicing: Investor Accounting The process of restoring an inactive mortgage to an active status. As part of the reinstatement, you must report and remit all interest due whether or not you received it from the borrower. |
| REINSTATEMENT, FULL Servicing: Default Management The borrower restores a delinquent mortgage to active status by paying, in one lump sum, the total amount delinquent, including advances, accrued interest, legal costs and other expenses. |
| REINSTATEMENT, PARTIAL Servicing: Default Management The borrower restores a delinquent mortgage to active status by paying an amount less than the total amount delinquent (including advances, legal costs and other expenses incurred), signing a repayment plan for the remaining arrearage, and completing the repayment plan. |
| RELATED PERSON The Guide glossary A person that is any of the following:
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| RELIEF OPTION Servicing: Default Management An alternative to foreclosure providing a borrower with temporary relief and the opportunity to cure a delinquency over a defined period of time. |
| REMITTANCE ANALYSIS (Also known as: Cash Statement) Servicing: Investor Accounting A summary report Freddie Mac sends you that can help you manage and monitor your remittance process. The report summarizes:
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| REMITTANCE OPTIONS Servicing: Investor Accounting For monthly processing, the option you selected at the time the mortgage was sold to us. The remittance option is listed on the Funding Detail Report sent to you at the time of funding. You may select more than one remittance option in your portfolio. The five most commonly used remittance options are:
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| REMITTING Servicing: Investor Accounting The process of initiating a transfer of funds due Freddie Mac from your Freddie Mac custodial account.
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| RENEWAL OPTION Loan Product Advisor® An indication that the mortgage insurance renewal rate is based on the original loan amount (constant balance) or on the remaining amortized loan amount (declining balance). |
| RENEWAL TYPE Loan Product Advisor® An indication of the type of mortgage insurance renewal. |
| RENOVATION MORTGAGE The Guide glossary A Mortgage, the proceeds from which are used for the Permanent Financing that replaces the Interim Construction Financing obtained by the Borrower to purchase or refinance the land and an existing site-built home and to repair, restore, rehabilitate or renovate the site-built home. The related ULDD valid value is Construction to Permanent. |
REO For use in Section 2101.14, REO includes the following:
A transfer to REO (Real Estate Owned) occurs when a property is not sold at the foreclosure sale and we take title of the property. When we acquire the property we reimburse you for the interest you reported and remitted to us when the mortgage was delinquent. |
| REORDER CREDIT Loan Prospector® Outreach Optional service allowing the user to request fresh credit to be used in Loan Prospector Outreach for assessment within an existing client file. The assessment expiration date, reflecting the date the credit and assessment expires, will display on the Housing Counselor Results for each client. |
| REPAYMENT PLAN Servicing: Default Management An agreement between you and a borrower that gives the borrower a defined period of time to reinstate a delinquent mortgage by making payments in excess of the monthly payment. |
| REPORTING Servicing: Investor Accounting The process of transmitting information to Freddie Mac based on the accounting activity (or non-activity) for each mortgage in your Freddie Mac portfolio.
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| REPRESENTATION AND WARRANTY UNPAID PRINCIPAL BALANCE The Guide glossary The aggregate unpaid principal balance (UPB) as of the last day of each calendar month of all Mortgages and Real Estate Owned (REO) for which the Seller/Servicer is currently liable to Freddie Mac for the sale and/or Servicing representations, covenants and warranties in the Purchase Documents with respect to such Mortgages and REO. |
| REPURCHASE Servicing: Servicing System The requirement that a Seller/Servicer must buy back a Mortgage previously sold to Freddie. The reasons for repurchase include, but not limited to, those specified in Sections 3601.1 and 3602.1 of the Single-Family Seller/Servicer Guide. |
| REQUEST FOR RELEASE OF DOCUMENTS (Form 1036) Servicing: Default Management A form that the Seller/Servicer must send to the custodian authorizing the custodian to release the Freddie Mac note or assignment. |
| REQUIRED NET LIFETIME CEILING The Guide glossary For the ARM Cash program, the minimum Net Lifetime Ceiling required by Freddie Mac for a given Purchase Contract. |
| REQUIRED NET MARGIN The Guide glossary For the ARM Cash program, the minimum Net Margin required by Freddie Mac for a given Purchase Contract. |
| REQUIRED NET YIELD (RNY) The Guide glossary The amount of interest Freddie Mac receives from each Mortgage that it purchases. Freddie Mac publishes RNYs for various programs and commitment periods. These RNYs represent the interest that Freddie Mac must receive if purchasing a Mortgage for cash under the specific program and commitment period at a par price. |
| REQUIRED NOTICE Servicing: Balloon/Resets The written notice you must send to the Borrower to comply with the Balloon Rider and Balloon Note Addendum advising the Borrower of the Balloon Payment due on the Balloon Maturity Date and of the Reset Option. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| RESERVES Loan Product Advisor® The amount of verified assets after the mortgage closing. See Single-Family Seller/Servicer Guide Sections 5501.2 and 5501.3 for specific requirements, including the requirements for minimum required reserves and eligible assets |
| RESET (Resetting) Servicing: Balloon/Resets The act of changing the interest rate and extending the term of a Balloon/Reset Mortgage for either an Eligible or an Ineligible Borrower. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
RESET CONDITIONS Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| RESET DATE Servicing: Balloon/Resets For a Reset Mortgage, the effective date of the Reset Note Rate and is always the same as the Balloon Maturity Date. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| RESET MORTGAGE The Guide glossary A fixed-rate Mortgage that results from the changing of the interest rate and extension of the term of a Balloon Note when:
Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
RESET NOTE RATE Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| RESET OPTION The Guide glossary The Borrower's option to modify and extend a Balloon Note on the Balloon Maturity Date as provided in the Balloon Note Addendum and Balloon Rider, subject to the Borrower satisfying all the Reset Conditions. For a 5-year Balloon/Reset Mortgage, the term will extend for an additional 25 years. For a 7-year Balloon/Reset Mortgage, the term will extend for an additional 23 years. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| RESET RIDER Servicing: Balloon/Resets The term used throughout this manual to indicate both the Balloon Note Addendum and the Balloon Rider. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| RESIDENTIAL MORTGAGE CREDIT REPORT Discover Gold Through Quality A credit report meeting the requirements of Section 5203.1 of the Guide. |
| RETAIL MORTGAGE The Guide glossary A Mortgage that is originated, underwritten and funded by a lender or its Affiliates. The Mortgage is closed in the name of the lender or its Affiliate and if it is sold to Freddie Mac, it is sold by the lender or the Affiliate that originated it. A Mortgage that a Mortgage Broker or Correspondent completely or partially originated, processed, underwrote, packaged, funded or closed will not be considered, and should not be delivered as, a Retail Mortgage. |
| REVIEWED FINANCIAL STATEMENTS The Guide glossary Financial statements reviewed in accordance with the AICPA's Statement on Standards for Accounting and Review Service (SSARS). |
| REVISED TRANSACTION Servicing: Investor Accounting A revised transaction you send when you need to change the information transmitted for a mortgage. If it passes all the edits, then the revised transaction will replace any other transactions submitted during the current cycle for the mortgage. Our reporting system includes a flag used to tell us that a transaction is a revision. |
| REVISION WINDOW Servicing: Investor Accounting A timeframe that begins when you receive your edit reports and ends a couple of days prior to closing our system. The exact window timeframe varies every cycle. Freddie Mac continues to process loan-level transactions until we final a cycle, there is a revision window to transmit corrections. Contact your Freddie Mac Loan Portfolio Specialist before you transmit a correction late in the month to confirm the exact revision window timeframe. |
| REVISIONS Servicing: Investor Accounting A loan-level change to information for a loan already reported flagged as a revision. A revision tells our computer “this is the transaction you want to process.” A revision overrides any previous transaction. You may transmit revisions for the current cycle approximately two to three business days before the end on the month (depending on the cycle). For the exact date, contact your Freddie Mac Loan Portfolio Specialist. |
| RHS The Guide glossary Rural Housing Service, an agency of the U.S. Department of Agriculture. |
RHS LEVERAGED SECOND The RHS Leveraged Second is not eligible for sale to Freddie Mac. |
| RISK CLASS/CLASSIFICATION The Guide glossary The category listed on the Feedback Certificate that defines the level of underwriting required, any special underwriting provisions and, if applicable, relief from certain representations and warranties. |
| RISK OF PROPERTY OWNERSHIP The Guide glossary The risk of liability to Freddie Mac if we become the owner of the property. For example, there is Risk of Property Ownership if Hazardous Substances exist on or around the property, the property has been cited for a lead-based paint violation, if the property is in such deteriorated condition that it poses a safety risk, if the property has been condemned by a local authority or has been scheduled for demolition. |
| SAIF The Guide glossary SAIF is the abbreviation for the Savings Association Insurance Fund, which is the successor to the Federal Savings and Loan Insurance Corporation (FSLIC) insurance fund. |
| SCHEDULED INTEREST The Guide glossary The monthly interest scheduled to be paid under the amortization schedule applicable to the Mortgage. |
| SCHEDULED PRINCIPAL The Guide glossary The monthly principal scheduled to be paid under the amortization schedule applicable to the Mortgage. |
| SCHEDULED/ACTUAL ACCOUNTING METHOD (also known as Net Yield Accounting Method) Servicing: Investor Accounting See Net Yield Accounting Method |
| SCHEDULED/SCHEDULED ACCOUNTING METHOD Servicing: Investor Accounting An investor reporting accounting method used for mortgages sold with the Super ARC (Accelerated Remittance Cycle) remittance option. Principal and Interest (P&I) are calculated the same using either the Scheduled/Scheduled or the Guaranteed Timely P& I method. P& I are reported to Freddie Mac according to the loan's amortization schedule.
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| SCRA (Servicemembers Civil Relief Act) Servicing: Investor Accounting Relief under the federal Servicemembers Civil Relief Act of 2003 (SCRA), which replaced the Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA), as amended, is available to Borrowers covered by the SCRA as detailed below, regardless of duty station and whether this station is in a combat zone. You must be familiar and comply with all the provisions of the SCRA or applicable State law as it relates to service members. The SCRA covers the following:
If the Borrower requests military relief other than interest rate relief provided under the SCRA, you must submit Form 105, Multipurpose Loan Servicing Transmittal, for a Home Mortgage or Form 102, Second Mortgage/HIL Servicing Transmittal, for a Second Mortgage/HIL to us [11] within 10 Business Days of receiving the Borrower's request. You must include all relevant information along with your recommendation. Compulsory training that civilians must undergo periodically to retain membership in the reserve components of the armed services or the National Guard is not considered active duty for military relief purposes. |
| SEASONED MORTGAGE The Guide glossary A Seasoned Mortgage is one of the following:
Seasoned Mortgages are eligible for sale under negotiated contracts only. |
| SECOND HOME Servicing: Balloon/Resets A Second Home is a 1-unit residential Property owned by the Borrower, occupied by the Borrower for some portion of the year, and is not subject to any timesharing ownership arrangements. The Property must be:
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| SECOND MORTGAGE The Guide glossary A Mortgage on real estate on which there is located a structure designed principally for residential use by one to four families and is subordinate only to the lien of the first Mortgage. |
| SECONDARY FINANCING Loan Product Advisor® A lien junior to a mortgage delivered to Freddie Mac. |
| SECONDARY MARKET ADVISOR The Guide glossary A third-party vendor, also known as an SMA, that performs secondary market services on behalf of a Seller. An SMA must be authorized as a Selling Agent under Section 2403.3 to perform duties on behalf of the Seller in Loan Selling Advisor®. |
| SECONDARY USE CREDIT DATA Loan Product Advisor® Viewed credit data for the same loan application by secondary parties. |
| SECTION 184 NATIVE AMERICAN MORTGAGE The Guide glossary A Mortgage guaranteed by the U.S. Department of Housing and Urban Development pursuant to the Indian Housing Loan Guarantee Program, Section 184 of the Housing and Community Development Act of 1992 and originated pursuant to the Section 184 Regulations and the terms of the Guide. The related ULDD Data Point name is Public And Indian Housing. |
| SECTION 502 GRH MORTGAGE The Guide glossary A Mortgage originated to qualified Borrowers living in rural areas that is guaranteed by RHS pursuant to Section 502 of the Housing Act of 1949 (42 USC 1472) and originated and serviced pursuant to the RHS Guaranteed Regulations and the terms of the Guide. The related ULDD valid value is USDA Rural Housing. |
| SECURITY COUPON The Guide glossary For Mortgages sold through the Freddie Mac Loan Selling Advisor, Security Coupon is the Coupon as that term is defined in the Glossary. |
| SECURITY INSTRUMENT The Guide glossary The instrument (Mortgage, deed of trust, deed to secure debt) creating a valid lien on real estate. |
| SECURITY PRODUCT The Guide glossary For Mortgages sold through the Freddie Mac Loan Selling Advisor, Security Product is the Mortgage Product being pooled to form a UMBS, MBS, ARM PC or Supers. |
| SELECTED REPOSITORY Loan Product Advisor® Credit Repository providing credit information on which the Loan Product Advisor assessment was based, and which generated the repository reason codes provided on the Full Feedback Certificate |
| SELF EMPLOYED INCOME Loan Product Advisor® Borrower’s total monthly self employment income. This income comes from any businesses in which the borrower has 25% or more ownership. When processing loans for self-employed borrowers, indicate self-employment even if the self-employment income is not used to qualify for the loan. |
| SELLER Discover Gold Through Quality Best Practices An entity approved to sell mortgages to Freddie Mac. |
| SELLER NUMBER Loan Product Advisor® Freddie Mac-assigned number indicating a company approved to do business directly with Freddie Mac. Loan Product Advisor AUS automatically enters this value on the Loan Product Advisor Main page from the User Profile page. Loan Product Advisor AUS enters the generic Seller Number 121555 for brokers; they cannot edit or change this number. However, a mortgage service provider (MSP) can update the number on the Loan Product Advisor Main page when entering a new loan. The Seller number is no longer updateable after a LP AUS Key and Loan Application Number are affiliated with a transaction. |
SELLER-OWNED CONVERTED MORTGAGE Convertible ARMs are not eligible for sale to Freddie Mac. |
| SELLER-OWNED MODIFIED MORTGAGE The Guide glossary A Mortgage that is owned by a Seller/Servicer and modified prior to sale to Freddie Mac. |
| SELLER/SERVICER The Guide glossary A Seller/Servicer is an institution approved to:
The term 'Servicer,' as used in this Guide and the other Purchase Documents, refers to a Seller/Servicer acting in its capacity as a servicer of Mortgages for Freddie Mac. A wholly owned subsidiary of a Seller/Servicer that is a federally regulated depository institution, acting on behalf of the Seller/Servicer, in the Seller/Servicer's name and under the Seller/Servicer's Freddie Mac Seller/Servicer number, does not need separate Freddie Mac approval. The Seller/Servicer remains fully liable to Freddie Mac under the Purchase Documents with respect to any Mortgage originated or sold to or serviced for Freddie Mac by the subsidiary on behalf of the Seller/Servicer. Wholly owned subsidiaries of Seller/Servicers that are non-depository and/or non-regulated institutions (such as Mortgage Bankers) must obtain a separate Freddie Mac approval in order to do business with Freddie Mac. A Seller/Servicer must be an institution that meets all of the following conditions:
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| SELLING AGENT The Guide glossary A Secondary Market Advisor that has entered into an agreement with a Seller to perform certain functions on behalf of the Seller and has been approved by Freddie Mac to perform selling duties in Loan Selling Advisor on behalf of the Seller pursuant to Section 2403.3. |
| SENIOR MANAGEMENT Discover Gold Through Quality Best Practices The person or persons with the authority to affect any changes warranted by the information provided to them. These individuals should also be free of any conflict of interest in performing this oversight role; for example, their compensation should not be related to the evaluation or approval of the lender's mortgage broker or correspondent. |
| SEPARATE CONSTRUCTION CONVERSION DOCUMENTATION The Guide glossary/Resets Documentation of the Construction Conversion Mortgage or Renovation Mortgage when the lender providing the Permanent Financing pays off the Interim Construction Financing with the proceeds of a new Mortgage. A new Note and Security Instrument are executed. |
| SERVICER Servicing: Balloon/Resets An institution acting in its capacity as a Servicer of Mortgages for Freddie Mac. |
| SERVICER PERFORMANCE PROFILE The Guide glossary A management tool that Freddie Mac uses to:
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| SERVICER SUCCESS SCORECARD The Guide glossary A confidential monthly performance review for all Servicers which measures a Servicer's performance based on key criteria in two categories: investor reporting and remitting, and default management. |
| SERVICING The Guide glossary The performance of all applicable obligations described in the Purchase Documents, including tasks necessary to maintain Mortgages sold to Freddie Mac in a manner that protects Freddie Mac's interests. |
| SERVICING AGENT The Guide glossary A Servicer that has received Freddie Mac's authorization to act on behalf of another Servicer in performing all or substantially all of the Servicer's Servicing obligations with respect to Freddie Mac-owned or guaranteed Mortgages. |
| SERVICING CONTRACT The Guide glossary The unitary, indivisible master servicing contract comprising all the rights, duties, obligations, representations, warranties, covenants and agreements between a Servicer and Freddie Mac, as set forth in the Purchase Documents. |
| SERVICING CONTRACT RIGHT The Guide glossary The indivisible, conditional, non-delegable right and obligation of the Servicer to perform Servicing of the Mortgages for Freddie Mac in accordance with, subject to, and under the Servicing Contract. |
| SERVICING SPREAD The Guide glossary The amount of interest income retained by the Servicer from each Mortgage as compensation for Servicing that Mortgage, and is the amount by which the Note Rate exceeds the Accounting Net Yield applicable to that Mortgage. Loan Selling Advisor The Mortgage Coupon less the Accounting Net Yield. The portion of the Coupon Rate retained by the Seller or designated Servicer as compensation for servicing the Mortgages. Servicing: Investor Accounting The servicing spread (sometimes called the servicing fee) is the amount you keep for servicing the mortgage for Freddie Mac. It is the difference between the note rate and the ANY. If we round to the nearest 1/8 when calculating the new ANY and the note does not provide for rounding the note rate, the servicing spread may change after a note rate change, but will be within a range for the term of the note. |
| SERVICING TOOL The Guide glossary Servicing Tool includes any platform, related computer, other hardware or electronic device application or operating system software, web site, Freddie Mac-owned, -leased or -controlled private data or other communication network, interface and/or connectivity that a Servicer uses in connection with the performance of its Servicing obligations. |
SETTLEMENT / CLOSING DISCLOSURE STATEMENT |
| SETTLEMENT CYCLE The Guide glossary The period during which Freddie Mac broadcasts the PC Pool to the Federal Reserve; publishes pool disclosure statistics; and prepares the Funding Detail Report and Form 15A or Form 15C, Loan Purchase Statement, as applicable. This period begins on the morning after the Final Delivery Date and ends on the Settlement Date. In addition, in Loan Selling Advisor, the terms Settlement Cycle, funding cycle and purchase cycle can be used interchangeably. |
| SETTLEMENT DATE The Guide glossary For the Guarantor and MultiLender Swap programs, the date when Freddie Mac purchases the Mortgages and sells the UMBS, MBS, ARM PCs or Supers to the Seller. For purposes of this Guide, the Settlement Date is the Funding Date. Mortgage delivery must be made in advance to meet the established Settlement Date. Investor Accounting: Custodial Accounting The settlement date is the date of the mortgage note, also known as the origination date. |
| SETTLOR The Guide glossary The individual who creates a Living Trust. A Living Trust may have one or more Settlors. |
| SFHA Servicing: Default Management Special Flood Hazard Area. |
| SHORT-TERM FORBEARANCE AGREEMENT Servicing: Default Management A written agreement between you and the borrower to reduce monthly payments for a period of time not to exceed six months, or suspend monthly payments for a period of time not to exceed three months, from the date of the agreement. At the end of the short-term forbearance period, the borrower must cure the delinquency through full reinstatement, a repayment plan not exceeding 12 months from the due date of the last paid installment, or payment in full. |
| SHORTAGE PERCENTAGE Servicing: Servicer Performance Profiles For Servicer Performance Profiles, the cumulative total of each day's cash shortage amount expressed as a percentage of the total due to Freddie Mac for the three-month cycle. |
| SINGLE-FAMILY SELLER/SERVICER GUIDE (The Guide) The legal document stating Freddie Mac’s requirements and guidelines for Mortgages secured by 1- to 4-unit properties that Seller/Servicers are obligated to adhere to. This document is amended from time to time. |
| SOLE PROPRIETORSHIP Discover Gold Through Quality Best Practices An unincorporated business owned by one person; also called 'individual partnership.' The individual owner has all rights to profits from the business as well as all the liability and losses. |
| SPECIAL RESET MORTGAGE TITLE INSURANCE Servicing: Balloon/Resets A type of title insurance designed specifically for Freddie Mac Reset Mortgages. This coverage insures that the priority, validity and enforceability of the Mortgage has not been affected by the Reset. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| SSCRA (SOLDIERS' AND SAILORS' CIVIL RELIEF ACT OF 1940) Servicing: Investor Accounting See SCRA. |
| STABLE MONTHLY INCOME Servicing: Servicer Performance Profiles For Servicer Performance Profiles, the borrower’s verified gross monthly income from all sources expected to continue for at least the next three years. |
| STANDARD DOCUMENTATION The Guide glossary The minimum Documentation Level that is required for:
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| STANDARD REMITTANCE CYCLE The Guide glossary The remittance cycle for which Freddie Mac calculates the actual principal and forecasted scheduled interest based on the Servicer’s successful loan-level reporting as of the P&I Determination Date that is due on the second Business Day after the P&I Determination Date. In Loan Selling Advisor, this term can be used interchangeably with Standard Remittance Option. |
| STANDARDIZED ADDRESS Loan Product Advisor® The subject property address submitted through Loan Product Advisor has been verified for accuracy and validity based on the U.S. Postal Service address database. The address will be returned in a standardized format in the Address Information subsection of the Full Feedback Certificate. See Address Guidelines for more information. |
| STATE The Guide glossary As used in the Freddie Mac Single Family Seller/Servicer Guide, the term 'State' includes the District of Columbia, Guam, Puerto Rico and the Virgin Islands as well as the 50 States. |
| STATED INCOME The Guide glossary All qualifying income reported on the Mortgage application by the Borrower. |
| STEP RATE BALLOON LOAN MODIFICATION Servicing: Balloon/Resets A modification product specifically designed for use with maturing Balloon/Reset Mortgages that allows for a fixed rate of interest for the first five years of the remaining term at the Borrower’s Ability to Pay Rate. The interest rate beginning at year six, adjusts (steps) to the 60-day RNY in effect at the time of approval or at 4:30 p.m. Eastern Time on the 45th day prior to the Maturity Date, whichever is higher, plus 37.5 basis points rounded to the nearest 1/8%. It is also the name of the form executed by a Borrower who’s Mortgage we identified as having an imminent danger of default evidencing a modification and extension of a maturing Balloon/Reset Mortgage. Balloon/Reset Mortgages are no longer eligible for sale to Freddie Mac. |
| STEP-RATE MORTGAGE The Guide glossary A modified Mortgage with an interest rate scheduled to step up or increase over time. |
| STRAW BORROWER Discover Gold Through Quality Best Practices A form of fraud where one person purchases property or takes out a mortgage for another to conceal the identity of the real borrower. Usually the real borrower would not qualify for the mortgage. |
| STREAMLINED ACCEPT DOCUMENTATION The Guide glossary The minimum Documentation Level required for Accept Mortgages that receive a Risk Class of Accept with a feedback message indicating Streamlined Accept eligibility. |
| SUBORDINATE AMOUNT Loan Product Advisor® Total amount of subordinate financing. This is the total amount of financing by a type of debt inferior to this loan, including HELOC current balances. |
| SUBORDINATION AGREEMENT Servicing: Balloon/Resets The document used to move a prior or senior Mortgage lien into a secondary position, or to prohibit a junior lien from becoming a senior lien when a modification to the existing senior lien is recorded. |
| SUBSEQUENT ADJUSTMENT PERCENTAGE Loan Product Advisor® Percentage change in the temporary subsidy buydown rate at each adjustment period after the initial adjustment. For instance, if the interest rate will increase .750 percent after the initial adjustment, the subsequent adjustment percentage = 750. |
| SUBSEQUENT TRANSFER OF SERVICING The Guide glossary A Subsequent Transfer of Servicing means any Transfer of Servicing any time after Freddie Mac purchases the related Mortgages. |
| SUBSERVICING AGREEMENT The Guide glossary An agreement between a Servicer and its Servicing Agent whereby the Servicing Agent agrees to perform all or substantially all of the Servicing obligations of the Servicer (i.e., the Master Servicer). |
| SUBSIDIARY The Guide glossary For Wholesale Home Mortgages, a corporation that is controlled by a Seller through the Seller's ownership of sufficient shares of voting stock to control the appointment of the members of the board of directors of the Subsidiary. |
| SUPER ACCELERATED REMITTANCE CYCLE (Super ARC) Servicing: Investor Accounting An investor reporting remittance option where funds are due to Freddie Mac on a contract-specified calendar day between the 1st and 15th calendar day of the month. The funds must be available the preceding business day if the calendar day is a non-business day. Super ARC remittances will use the scheduled/scheduled accounting procedure because you will remit funds before the accounting cutoff. |
| SUPERSTM The Guide glossary A Supers is a mortgage-backed security issued by Freddie Mac pursuant to the relevant Master Trust Agreement that receives principal and interest from its underlying assets, which are UMBS or other Supers. |
| SUPERS OFFERING CIRCULAR The Guide glossary The Supers Offering Circular is the offering circular in effect on the Date of Seller’s Offer that relates to the Mortgage being purchased and the Supers being sold in the MultiLender Swap. The Supers Offering Circular is the Offering Circular for Supers, Giant MBS and Other Pass-Through Certificates. |
| SUPERS POOL The Guide glossary A Supers Pool is a discrete group of UMBS, backed by Mortgages and/or other Supers, that is identified by a CUSIP Number and a Pool Number in the records maintained by Freddie Mac. |
| SUPERS POOL SUPPLEMENT The Guide glossary A Supers Pool Supplement is a disclosure document that supplements the Supers Offering Circular and contains information about the UMBS and/or Supers in a Supers Pool as of its Settlement Date. |
| SUSPICIOUS ACTIVITY The Guide glossary Activity that a Seller or Servicer reasonably believes may involve actual or possible money laundering, terrorist financing, mortgage-related fraud or other financial crimes, and which is undertaken by any party involved in any stage of the origination, selling or Servicing of a Freddie Mac Mortgage. |
| SYSTEM CLEARED EDIT REPORT Servicing: Investor Accounting A report that lists transactions with edits our system was able to resolve and process. Our system will
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| TEMPORARY SUBSIDY BUYDOWN (Also Known As: Temp Subsidy Buydown) Loan Product Advisor® Money paid by the borrower or a third party to pay down the interest rate (reducing the borrower's monthly payment) for a specific period of time. A temporary subsidy buydown can be included with either a fixed loan or an adjustable loan; it does not affect the Plan Type. |
| TEXAS EQUITY SECTION 50(a)(6) MORTGAGE The Guide glossary A First Lien home equity refinance Mortgage originated pursuant to Section 50(a)(6) of Article XVI of the Texas Constitution secured by homestead property located in Texas and meeting the requirements of Section 4301.7 and other sections referenced in Section 4301.7. |
| THIRD PARTY FORECLOSURE SALE (exception code 71 for Conventional mortgages, exception code 73 for FHA/VA mortgages) Servicing: Investor Accounting Someone other than the mortgagee, mortgagor, or their representative. A third-party foreclosure sale occurs when a third party purchases the property at the foreclosure sale. The exception date you report on your loan-level transaction is the foreclosure sale date. You report and remit the third-party foreclosure sale within five business days of receipt of funds. |
| TIER The Guide glossary A Tier is the rating that a Servicer receives on its Servicer Performance Profile. A Tier rating is given for both the investor reporting and remitting and default management categories of the profile. The Tier can be a number from 1 through 4, and 'V' or 'X' only for default management. |
| TIME DEPOSIT The Guide glossary A Time Deposit refers to funds deposited in a certificate of deposit held in a financial institution for a fixed term or with the understanding that the depositor can withdraw the funds only by giving prior notice. |
| TITLE ENDORSEMENT Servicing: Default Management A document issued by a title insurer at or after the time a title insurance policy is issued. The endorsement may either provide additional coverage to a title insurance policy or reverse the coverage of a prior policy. |
| TITLE REPORT Servicing: Balloon/Resets A report on the current status of title to a Property as it pertains to any defects, encumbrances, liens or covenants. A Title Report is also known as a title search. |
| TITLE SEARCH Servicing: Default Management A review of the public records to determine the identity of parties having an interest in the property and to determine the existence and nature of any liens or claims outstanding on the property. Also know as title examination, rundown or abstract. |
| TLTV (Total Loan-to-Value) Loan Product Advisor® The total loan-to-value (TLTV) ratio provided by Loan Product Advisor is obtained by dividing the sum of the First Lien Mortgage amount and the disbursed amount of the Home Equity Line of Credit and any other secondary financing by the lesser of property's purchase price or appraised value. |
| TOTAL GIFT FUND Loan Product Advisor® Money given to borrower(s) to assist with the down payment, closing costs and prepaids. This includes both gift funds received and those not yet received. |
| TOTAL LIABILITY Servicing: Investor Accounting Amount that shows the adjustment to the net current amount due to Freddie Mac for amounts reported, but not collected (delinquents), and for amounts collected, but not reported (prepaids). |
| TOTAL MONTHLY DEBT Loan Product Advisor® Total monthly debt of all borrowers on the loan application, including non-occupant Co-borrowers. The components of total debt may differ depending on the occupancy type and Co-borrower occupancy status for the subject loan. Calculate Total Monthly Debt as the sum of the monthly charges for the following:
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| TOTAL VARIANCE Servicing: Investor Accounting Amount identifying the variance between the adjusted bank balance and the adjusted liability. |
| TRADELINE The Guide glossary The type of credit obligation and its associated information, such as date opened, balance and periodic payment history, that is typically listed on a credit report. |
| TRADITIONAL TITLE INSURANCE Servicing: Balloon/Resets The standard American Land Title Association (ALTA) form coverage issued by title insurers. To obtain this coverage, an insured must obtain a Title Report. |
| TRANSACTION Loan Product Advisor® Copy of loan information created during each submission of loan data to Loan Product Advisor AUS. Each copy can be viewed and assigned, and have its own results associated with it. |
| TRANSACTION ID Loan Product Advisor® A Freddie Mac generated identifier that identifies the unique transaction for the loan. Only the last transaction of a loan can be modified or assigned to a wholesaler. |
TRANSACTION NUMBER For example, if an individual Mortgage is submitted to Loan Product Advisor five times, the same Key Number will be used, but each submission will generate a different Transaction Number. |
| TRANSACTIONS IN ERROR Servicing: Investor Accounting For Servicer Performance Profiles, criteria that includes all loans in section 1,3, 4 and loans aged 30 days or greater in Section 2 of the Loan Reconciliation Difference Report for the most recent three-month period. |
| TRANSFER OF OWNERSHIP The Guide glossary Transfer of Ownership includes, but is not limited to, the conveyance of the Mortgaged Premises or any right, title or interest in the Mortgaged Premises, whether legal or equitable, voluntary or involuntary, by any of the following methods:
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| TRANSFER OF SERVICING The Guide glossary A Transfer of Servicing means, except as otherwise agreed in writing by Freddie Mac, a Servicer’s assumption and acquisition of the Servicing Contract Rights as of the Effective Date of Transfer with respect to the specific Mortgages and REO related to the Servicing transfer (which assumption includes any liability associated with any representation, warranty, covenant or agreement of the Seller or any prior Servicer, as set forth in the Purchase Documents, and exclusive of any settlement or release of liability (but only to the extent expressly applicable) of the Seller or any prior Servicer). |
| TRANSFEREE CUSTODIAN FOR CONCURRENT TRANSFER OF SERVICING Servicing: Servicing System The Custodian receiving delivery of the Note in accordance with the requirements of the Purchase Documents. |
| TRANSFEREE SERVICER The Guide glossary For Transfers of Servicing, the Transferee Servicer is the Servicer that assumes and acquires, or proposes to assume and acquire, the Servicing Contract Rights pertaining to a Transfer of Servicing. |
| TRANSFEROR SERVICER The Guide glossary For Transfer of Servicing, the Transferor Servicer that assigns and sells, or proposes to assign and sell, the Servicing Contract Rights pertaining to a Transfer of Servicing, provided that the Transferor Servicer shall remain liable for any and all related Seller and Servicer liability owned to Freddie Mac as of the Effective Date of Transfer. |
| TREASURY The Guide glossary The United States Department of the Treasury |
TRI-PARTY AGREEMENT
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| TRIAL PERIOD The Guide glossary The three-month period during which the Borrower makes payments that are an estimate of the anticipated modified payment amount, as one of the preconditions to modification. For Borrowers in bankruptcy, the Trial Period may be extended up to an additional two months. |
| TRIAL PERIOD PLAN The Guide glossary A temporary forbearance plan that sets forth in a written notice those terms and conditions with which the Borrower must comply during the Trial Period in order to obtain a permanent modification. |
| TRIAL PERIOD PLAN EFFECTIVE DATE The Guide glossary The date on which the first Trial Period payment is due under the terms of the Trial Period Plan. |
| TYPE OF PROPERTY Loan Product Advisor® Specifies the type of dwelling or structure for the property in which the borrower has an ownership interest and/or for which the borrower is obligated. |
| ULDD Data Point The Guide glossary ULDD Data Point refers to the MISMO® Data Point Name in Appendix A, Freddie Mac XML Data Requirements (“Appendix A”) of the Freddie Mac Implementation Guide for Loan Delivery Data (“Freddie Mac IG-LD”). |
| UMBSTM The Guide glossary A UMBS is a mortgage-backed security issued by Freddie Mac pursuant to the relevant Master Trust Agreement, representing a beneficial ownership interest in a specified Pool. UMBS are designed to qualify for “good delivery” in satisfaction of unspecified trades in the “to-be-announced” mortgage securities market. |
| UNDERSERVED AREA The Guide glossary Either of the following:
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| UNDERWRITING Discover Gold Through Quality Best Practices The analysis of the risk involved in making a mortgage as well as the determination of whether the risk is acceptable to the lender. Underwriting involves the evaluation of the property and of the borrower's credit worthiness. |
| UNDERWRITING SCORE The Guide glossary The one Credit Score selected from all usable Credit Scores obtained for an individual Borrower that quantifies the credit reputation risk for that individual Borrower. The related ULDD Data Point name is Credit Score Value. |
| UNDERWRITTEN SETTLOR The Guide glossary A Settlor in the Settlor's individual capacity who is underwritten and qualified according to the requirements of the Guide and other Purchase Documents as if the Settlor were the Borrower. |
| UNIFORM INSTRUMENTS The Guide glossary The Fannie Mae/Freddie Mac and the Freddie Mac Notes, Security Instruments (available for all States) and riders to the Security Instruments identified in Exhibit 4, Single-Family Uniform Instruments. |
UPB Servicing: Investor Accounting |
| VA CASE NUMBER Loan Product Advisor® The VA-assigned case number for VA loans. The number is used by VA to identify the loan. |
| VA HOUSEHOLD SIZE Loan Product Advisor® Number of people that meet the VA's definition of household size, per the VA Lender's Handbook. This is typically the number of people for whom the veteran borrower is responsible. |
| VA RESIDUAL INCOME Loan Product Advisor® Monthly balance of funds available for family support after meeting the borrowers' shelter expenses, debts, and taxes, per the VA Lender's Handbook. This number must be calculated per VA Form 6393 and submitted. Residual requirements for Loan Prospector AUS loans are not always the same as those required for traditional VA underwriting. |
| VA; VA MORTGAGE The Guide glossary The U.S. Department of Veterans Affairs / A VA Mortgage is a Home Mortgage that is guaranteed by the VA under Section 1810, Chapter 37 of Title 38, United States Code as amended. |
| WAC ARM Guarantor Contract The Guide glossary An optional Purchase Contract entered into by the Seller to sell eligible ARMs to Freddie Mac under the WAC ARM Guarantor program. |
| WAC ARM PC The Guide glossary A mortgage-backed security, with an investor payment delay of 75 days, that is backed by adjustable-rate Mortgages (ARMs). |
| WAREHOUSE AGREEMENT The Guide glossary A contract between a Warehouse Lender and a Seller pursuant to which the Warehouse Lender lends or advances funds to the Seller to finance its mortgage origination activities in exchange for a lien or other interest in Pledged Mortgages. |
| WAREHOUSE LENDER The Guide glossary Also referred to as a 'Warehouse Provider' or 'Interim Finance Provider', is the bank or other financial institution, including a Federal Home Loan Bank, that has entered into a Warehouse Agreement with the Seller to provide interim financing for Mortgages that are thereafter offered for sale to Freddie Mac. |
| WAREHOUSE LINE OF CREDIT Discover Gold Through Quality Best Practices An agreement that covers the short-term lending of funds by a commercial bank or other institution to extend credit up to a certain amount for a certain time to an entity using permanent mortgages as collateral. This form of interim financing is used until the mortgages are sold to a permanent investor. |
| WEIGHTED-AVERAGE COUPON (WAC) The Guide glossary The WAC of any group of Mortgages is calculated by:
Freddie Mac's determination of the WAC is conclusive. |
| WEIGHTED AVERAGE MONTHS TO ADJUSTMENT The Guide glossary For WAC ARM PC Pools, the Weighted-Average Months to Adjustment is the weighted average number of months to adjustment from the date of issuance of the WAC ARM PC to the initial scheduled adjustment date of the PC Coupon, based on the Interest Change Dates of the underlying Mortgages. |
| WEIGHTED AVERAGE REMAINING MATURITY (WARM) The Guide glossary The WARM of any group of Mortgages is calculated by:
With respect to buyup and buydown options described in Sections 6201.8(b) and 6201.8(c), the WARM is the Weighted Average Remaining Maturity, stated in months, of the aggregate of all Mortgages purchased pursuant to any Guarantor or MultiLender Swap conversion or Cash Purchase Contract, as of the Date of Seller's Offer. Freddie Mac's determination of the WARM is conclusive. |
| WHOLESALE HOME MORTGAGE The Guide glossary A Home Mortgage that a Mortgage Broker or Correspondent completely or partially originated, processed, underwrote, packaged, funded or closed, and sold or assigned to a non-Affiliate Seller who subsequently sold it to Freddie Mac. |
| WINDOW PERIOD The Guide glossary The period during which a State's due-on-transfer or due-on-sale restrictions were in effect. |
| WINDOW PERIOD MORTGAGE The Guide glossary A Mortgage that was originated or assumed during a Window Period. |
| WINDOW PERIOD STATE The Guide glossary A State that restricts the enforceability of due-on-transfer or due-on-sale clauses in Mortgages originated or assumed during a Window Period. |
WOMEN-OWNED BUSINESS ENTERPRISE
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| WORKOUT Servicing: Default Management An alternative to foreclosure that eliminates or reduces our potential losses if the property securing the mortgage were to be acquired through a foreclosure sale. |
| WORKOUT MORTGAGE ASSUMPTION Servicing: Default Management An assumption that permits a qualified applicant to assume title to the property and the mortgage obligation from a borrower who is currently delinquent or in imminent danger of default on his or her mortgage because of an involuntary inability to pay. |
| WORKOUT PROSPECTOR® Servicing: Default Management A Freddie Mac-owned loss mitigation application that accesses specific Mortgage information from Freddie Mac's database as well as data input by the Servicers and assists Servicers in their analysis and structuring of workouts and other alternatives to foreclosure for Freddie Mac Mortgages. |
| WORKOUTS/REO+WORKOUTS Servicing: Servicer Performance Profiles For Servicer Performance Profiles, criteria that measures the adjusted weighted value of the workouts that you settle as a percentage of the opportunities for workouts. |
X |
| No Entries |
| YEARS EMPLOYED IN THIS LINE OF WORK Loan Product Advisor® The total number of years the borrower has been employed in their occupation. |
| YEARS OF COVERAGE Loan Product Advisor® An indication of the number of years the mortgage insurance policy will cover the loan. |
| No Entries |
| 0-99 |
| 2- to 4-UNIT CONDOMINIUM PROJECT The Guide glossary A 2- to 4-Unit Condominium Project is a project that is comprised of at least two but no more than four 1-unit dwellings that are each separately owned with separate legal descriptions. It may be an Established Condominium Project or a New Condominium Project. The units may be attached, detached or a mix of attached and detached units. |
| 11th DISTRICT COST OF FUNDS INDEX (11th District COFI) The Guide glossary For adjustable-rate Mortgages (ARM), the 11th District COFI is the monthly average cost of savings, borrowings and advances of the members of the Federal Home Loan Bank of San Francisco (the 'Bank'), as made available by the Bank. 11th District COFI ARMs are not eligible for sale to Freddie Mac. |