The following changes have been made in ConformX to support Home Possible Mortgages:
- Borrower’s Authorization for Counseling (Cx5599) has been updated to better reflect the requirements found in Freddie Mac Single Family Seller/Servicer Guide Section A34.12 entitled “Homeownership education and landlord education”. The text in the body of the document will read as follows for Home Possible loans:
If I fail to make any mortgage payment as agreed, I understand that the servicer of my mortgage loan may refer, at its discretion, my information to a non-profit third-party homeownership counseling agency or the counseling agency that provided the pre-purchase homeownership education that will advise me about finding ways to meet my mortgage obligation.
I hereby authorize the servicer to release certain information related to the servicer’s own experience with me to such third-party counseling organization and request that the counseling party contact me.
I further hereby authorize the third-party counseling organization to make a recommendation about appropriate action to take with regard to my mortgage loan, which recommendation may assist the servicer in determining whether to restructure my loan or to offer other extraordinary services that could preserve my long-term homeownership.
- Print Authorization for Counseling (Field 100811) will be set to “Yes” globally when Special Program (Field 33578) is set to “Home Possible”.
- The following new Home Possible/Home Possible Advantage mortgage loan programs have been added under Freddie Mac (FHLM) in ConformX to set Special Program (Field 33578) to “Home Possible”, which will set Print Authorization for Counseling (Field 100811) to “Yes”, triggering the Borrower’s Authorization for Counseling (Cx5599) to print with the Home Possible version of text detailed above:
107069 Home Possible/Advantage Conventional Fixed
107067 Home Possible/Advantage 5/1 LIBOR ARM Non-Convertible – 2/2/5
107068 Home Possible/Advantage 7/1 LIBOR ARM Non-Convertible – 5/2/5
107066 Home Possible/Advantage 10/1 LIBOR ARM Non-Convertible – 5/2/5
The new Freddie Mac Home Possible programs and updated Borrower’s Authorization for Counseling are now available (January 30, 2016). If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR 191820 & TW 143442