Selling Mortgages for Securities Using Loan Selling Advisor

Transcription

1 Selling Mortgages for Securities Using Loan Selling Advisor User Guide December 2017

2 This document is not a replacement or substitute for the information found in the Single-Family Seller/Servicer Guide and/or terms of your Master Agreement and/or other Pricing Identifier Terms Freddie Mac Selling Mortgages for Securities Using Loan Selling Advisor Page ii December 2017

3 Chapter Introduction to Loan Selling Advisor SM 1 Overview of Loan Selling Advisor Loan Selling Advisor SM provides a seamless secondary marketing process that incorporates pricing, contracting, loan entry, loan allocation, purchase edits, note certification, contract settlement and funding functionalities. You will use Loan Selling Advisor to sell and deliver loans to Freddie Mac through the Cash, Guarantor or MultiLender Swap executions. Loan Selling Advisor is a rebranded and updated version of the Selling System and is accessible via single sign-on in the Loan Advisor Suite portal. Establishing User Roles User roles determine a designated user s authority within an organization to access various pages and perform selected functions within Loan Selling Advisor. Loan Selling Advisor has defined several user roles for Cash, Guarantor and MultiLender executions. To obtain access to Loan Selling Advisor, or to modify and/or delete an existing user, complete Form 900: Authorized User Identification and Certification Form. Sellers may assign multiple user roles to a single individual. For additional information, refer to Guide Section Once you receive your user ID and password, test them immediately to ensure that you have the appropriate access for your user role(s). Use the following tables to help you determine which tasks each user role can accomplish. User Roles Cash and Guarantor or MultiLender If you need to Take Out Cash Contract Accept or reject contract pricing View the Exclusionary List Take Out a Guarantor or MultiLender Contract View Settlement Statements Approve/reject proposed certification changes Search for Loans Search for Contracts Search for Contracts Search for Loans View and control the Contract Pipeline View and control the Loan Pipeline Create New Loans Modify Loans Import Loans One of your user roles must include Cash SMO Guarantor SMO Pipeline Manager Loan Manager Selling Mortgages for Securities Using Loan Selling Advisor

4 Introduction to Loan Selling Advisor User Roles Cash and Guarantor or MultiLender If you need to One of your user roles must include Import from Loan Product Advisor Modify Best Efforts Import (Cash) View Import Results Delete Loans Search for Loans Review Certification Issues View Evaluation Issues Clear Loan Edits Evaluate Loans Enter Settlement Details Create/View Certification Forms Manage Settlement Forms View Settlement Statements Search for Loans Search for Contracts Designate a Warehouse Lender Access Transfer Servicing Instructions (Cash) Pair Off Contracts (Cash) Add Loans to Contract Remove Loans from Contracts Price Loan Against Contract Search for Contracts Manage Templates Request FM Price Sheet Search for Loans Search for Contracts View Certification Pipeline Save and Approve Bill of Sale Create Certification Forms Search for Contracts View Certification Forms Build Bill of Sale View Freddie Mac s Exclusionary List Closer/Shipper Secondary Analyst Delayed Note Certification Manager Delayed Note Certification Officer Exclusionary List Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 1 December 2017

5 Introduction to Loan Selling Advisor Additional Roles for Guarantor or MultiLender If you need to Create Security Wire Transfer Instructions Edit Security Wire Transfer Instructions Delete Security Wire Transfer Instructions (The employee assigned to this role may not have the role of Setup Manager.) Approve Security Wire Transfer Instructions Reject Security Wire Transfer Instructions Select Security Wire Transfer Instructions Assign Security Wire Transfer Instructions Remove Security Wire Transfer Instructions View Seller s Guarantor and MultiLender pricing components Export Seller s Guarantor and MultiLender pricing components Generate a Guarantor Rate Sheet Request Prices for Mandatory Guarantor/MultiLender Contracts Create Live Trade Contracts One of your user roles must include Set Up Administrator Setup Manager (See Guide Section regarding special requirements for Setup Manager (Certificate of Incumbency) Security Wire Assignor Guarantor Rate Sheet Mandatory Guarantor SMO BUBD IO Trader Before You Begin Using Loan Selling Advisor Before you begin using Loan Selling Advisor, ensure you meet the minimum system recommendations and have access to Loan Selling Advisor. This section provides information on system recommendations, hours of operation, and accessing Loan Selling Advisor. System Recommendations It is best to view the Loan Advisor Suite in Internet Explorer 11. If using a lower browser version of Internet Explorer, you may notice some display and formatting differences. For viewing Management Reporting in full capability and flexibility, we recommend downloading the free web browser plug-in Microsoft Silverlight Version 4 or higher. Hours of Operation Click this link and navigate to the Loan Selling Advisor s hours of operation - Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 1 December 2017

6 Introduction to Loan Selling Advisor Accessing Loan Selling Advisor Loan Selling Advisor is accessed via the Internet. To access, complete the following steps: Step / Action 1. Obtain User Names and Passwords Result / Notes Seller/Servicers must complete Form 900 [PDF] (Loan Selling Advisor Authorized User Identification and Certification Form) and fax to or to: pe_customer_setup@freddiemac.com. 1. The Loan Selling Advisor Password is ed to the Primary Contact/Administrator. 2. Your Individual Password and Personal Identification Number (PIN) are ed directly to you. We recommend you retain this information. You will need your PIN if you need to request a password reset. If this is the first time you are using your User Name and Password, you will be prompted to change your password and complete the User Profile page. For more information, go to FreddieMac.com and visit the Get Started Using Loan Selling Advisor web page 2. In your Internet browser, enter into the address line. Then click Enter. Bookmark this address for future access The Loan Advisor Suite page displays: Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 1 December 2017

7 Introduction to Loan Selling Advisor Step / Action Result / Notes 3. Enter the Username and Password from your Freddie Mac message. Then click LOG IN. After you click LOG IN, since you are using log in information for Loan Selling Advisor, you will automatically see the Loan Selling Advisor Welcome page You may change your individual password at any time. Launch the following demonstration for extra help: User Profile and Password Reset Passwords must be at least eight characters long and must include at least two alpha and one non-alpha character. To ensure the security of your data, we recommend you change your password regularly preferably every 90 days If you forget your username or password, follow the prompts from the links Forgot your username/password? at the bottom of the LOG IN window. 4. On the Loan Advisor Suite Welcome page, click Open across from Loan Selling Advisor. The Loan Advisor Suite Welcome page displays: Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 1 December 2017

8 Introduction to Loan Selling Advisor Step / Action Result / Notes 5. Click View Guide to see link descriptions displaying on the Welcome page, then click Close. 6. Login: System Context page - Select the appropriate Unit Name and Seller/Servicer Number from the drop-down menus, and then click Continue. Based on your assigned user role(s), the Unit Name drop-down menu may or may not appear during your log in process. 7. The Login: Terms & Conditions page will display. This page displays every time you log in. Review the Terms & Conditions and click I Agree to indicate you want to proceed. The Welcome to Loan Selling Advisor Home page displays Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 1 December 2017

9 Introduction to Loan Selling Advisor Welcome to the Loan Selling Advisor Home Page The home page can always be accessed by selecting Loan Selling Advisor from the blue title bar. The table below outlines the functions and features available in Loan Selling Advisor: Feature 1 2 Loan Advisor Suite Menu User Information Description Links to the Loan Advisor Suite home page. Menu links to the Loan Advisor Suite of tools Provides access to resources and support: Displays the User ID you used to log into Loan Selling Advisor. When you click your User ID, a drop-down menu displays with My Preferences information and the ability to log out. Contact Us displays the number customers may use to obtain live support, business support and application availability hours. Help provides access to the Loan Advisor Suite online help system. Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 1 December 2017

10 Introduction to Loan Selling Advisor Feature 3 Online Help Description User Context: When you click, your User ID a panel displays your organization information. If you operate under multiple Seller/Servicer numbers, you have the ability to log in using a different seller number or branch (if applicable) without completely logging out of the system. Online Help provides access to process overviews and procedures Learn more about Online help later in this chapter. 4 Main Menu Provides access to the main functions available to your user role. Scroll over a menu topic to access the panel of functions. Click Loan Selling Advisor to return to the home page. 5 6 News and Resources Customer Service Provides information about upcoming or current system availability. It is important to review these messages as they may indicate planned down time for technical enhancements, or may reference potential data delays if processing jobs are running longer than expected. Provides links to additional resources. This page will provide updates regarding Loan Selling Advisor. It is updated regularly, so check it often. Displays customer-service contact information. Navigation It is easy to navigate in Loan Selling Advisor with the main menu accessible across the top of the page. The menu enables you to access and perform a multitude of functions under five different sections: Contracts, Loans, Data Sets, Third Party and Settlements. The user role(s) assigned to you will determine what functionalities you can view/access. Therefore, only functions under your user role(s) will display. Hover your mouse over each section to view the functions available for your user role. Example - Functions available under Contracts: Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 1 December 2017

11 Introduction to Loan Selling Advisor The tables below describe the functions accessible from the main menu. Main Menu Functions Menu Name Function Name Use to... Contracts Request Freddie Mac Cash Price Sheet Add Loans to Cash Contract Manage Cash Contract Templates Search for Cash Contracts Take Out Cash Contract Remove Loans from Cash Contract View Import Guarantor Contract Results Guarantor Pricing & Contracts Pair Off Cash Contract View Contract Pipeline Request, print and export Freddie Mac Price Sheets View Exhibit 19, Post Settlement Credit Fees in Price Execute a Freddie Mac Cash Contract Add loans to a contract to fulfill the contract terms Create and modify contract templates Search for contracts in your pipeline Execute a Freddie Mac Cash contract Remove loans from a contract View the results of imported contract files Execute a Guarantor or MultiLender Contract, Live Trade Contract or Request a Rate Sheet Cancel all or part of the remaining balance on a contract if the contract cannot be fulfilled. A fee may be assessed View your organization s contract activity and search for contracts in your pipeline. Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 1 December 2017

12 Introduction to Loan Selling Advisor Main Menu Functions Menu Name Function Name Use to... Loans View Loan Pipeline Manage loans in your pipeline View, modify, evaluate, and delete pipeline loans Compare pipeline loans with loan data in Loan Product Advisor. Modify Best Efforts Import View Evaluation Results View Servicing Loan Number Import: Results Import MISMO XML Import from Loan Product Advisor View Evaluation Issues View Servicing Loan Pipeline View Import Results Create New Loan Import function used for an existing loan and contract, and is limited to one loan per file Check the progress of loan evaluation and access loan evaluation results View Total Loan Number Count, Total Loan Number Processed, Total Loan Number Failed and Import Status. Import loans into the system using the ULDD specification based on the MISMO v3.0 standard Import loan data from Loan Product Advisor into the system to fulfill contract terms Search and view loans with evaluation issues Search and view Servicing Loan Pipeline View the results of an import Enter a new loan into the system to fulfill contract terms Main Menu Functions Menu Name Function Name Use to... Data Sets Export Delivery Data Select loan or contract data to export, and the data set and file format for the export. Retrieve Historical Data View Export Results Search loan data at the Contract Level, Loan Level or Loan Level for Servicing Buyer. Select one or more output data for the report, including Fee Details, Loan Details, Funding Details, Purchase Statement, 996E, 1034E, Bill of Sale and R&W Relief Details. Check progress of export files and access export files that are completed. Main Menu Functions Menu Name Function Name Use to... Third Party Manage Originator Pipeline Manage Aggregator Pipeline Search Originator Pipeline by Candidate & Rejected, Submitted and/or Transferred. Search Aggregator Pipeline for loans in Transfer Status and upload loans for batch acceptance or rejection. Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 1 December 2017

13 Introduction to Loan Selling Advisor Main Menu Functions Menu Name Function Name Use to... Settlements Review Certification Issues View Settlement Statements View Certification Pipeline View Exclusionary List Enter Settlement Details Setup Security Wire Administration View Exclusionary List Create/View Certification Forms Transfer Servicing Instructions (Cash Servicing Released Only) Identify certification issues on loans submitted for certification. Print and view Loan Purchase Statements and Funding (Settlement) Detail Reports. Search Certification Pipeline at Contract Level. Print and view Freddie Mac s Exclusionary List Select wiring instructions Select a Warehouse Lender, if applicable Select the Servicer, if applicable Change your default Custodian, if applicable Review and approve the pending Security Wire Instructions. Contains the names and address of individuals and companies that have been excluded from participating in transactions involving Freddie Mac loans. Build, view and print: Form 996E Warehouse Provider Release and Transfer Form 1034E Custodial Certification Schedule Note Delivery Cover Sheet Bill of Sale and Form 1034E Print and view: Transfer of Servicing Packaging and Shipping Instructions Document Checklist Seller Payment/Refund Transmittal Loan Selling Advisor Resources When you sell loans to Freddie Mac, you have access to several tools that will help guide you through available functionality and processes, including but not limited tothe Learning Center, webinars, tutorials, online help and live support. The Learning Center This comprehensive portal offers a Learning Catalog, Webinars, Self-Paced Tutorials and Job Aids. You can access it here: FreddieMac.com/learn for all your training needs Selling Mortgages for Securities Using Loan Selling Advisor Page 11 Chapter 1 December 2017

14 Introduction to Loan Selling Advisor Field-Level Help Loan Selling Advisor provides help at the field level. When on the Create New Loan page, or when requesting a Guarantor or MultiLender contract, you can access help by clicking the data point name. In this example, clicking the field name Seller Loan Identifier results in the online help window opening and displaying the following: Following are descriptions of the content included in Field-Level Help pop-up pages. Field-Level Help Content Definition Valid Values Provides a definition for the data point you selected. Each data point in the Create/Modify Loan page has field-level help. Describes the values available in the drop-down menus that are allowable by Freddie Mac, including how and when to select them. Additionally, for those fields into which text must be entered, describes the number of characters allowed and the proper format to use. For example, some data points prohibit decimal places while others (Note Amount) accept them. When to Use Describes whether the data point is required based on if you are delivering Phase 1 data points or Phase 2. How to Use Sort ID# Provides additional information if needed. Is used to cross reference the Uniform Loan Delivery Dataset (ULDD) data point name with Appendices A and D (Freddie Mac s XML Data Submission Requirements (specification file)). This can help when mapping to your internal systems or attempting to clear a loan edit. Also, refer to Single Family Seller/Servicer Guide Chapter Selling Mortgages for Securities Using Loan Selling Advisor Page 12 Chapter 1 December 2017

15 Introduction to Loan Selling Advisor Online Help Online Help provides process overviews and procedures You can access Online Help from any page within Loan Selling Advisor by clicking the Help icon on the right side of the page. The main help menu displays allowing you to select the a frequently visited topic that you need help with. You can also search for content in the search field or select from the Table of Contents. Selling Mortgages for Securities Using Loan Selling Advisor Page 13 Chapter 1 December 2017

16 Introduction to Loan Selling Advisor Live Support Customers may obtain live support by calling the Freddie Mac Customer Support Contact Center (800- FREDDIE) and selecting option 3 for delivery. The support line is available Monday through Friday from 8:00 AM until 8:00 PM Eastern Time. Browser Find Feature While using Loan Selling Advisor, you also have the option of using your browser s find feature to search for information on the page you are viewing in the system. Just key in the name of the topic, the function or the data field name into the Find box. To use your browser s find feature, follow these steps: 1. Press Ctrl+F on your keyboard to access the find feature. A Find box will display. Selling Mortgages for Securities Using Loan Selling Advisor Page 14 Chapter 1 December 2017

17 Chapter 2 Guarantor and MultiLender Contracts Overview This chapter contains information on the Guarantor and MultiLender Swap program, Classes of Securities, Master Agreements, Pricing Identifiers and contracts. Through the Guarantor and MultiLender Swap program, you sell eligible mortgages to Freddie Mac in exchange for Gold PCs, Giant PCs or WAC ARM PCs. A PC is a Mortgage Participation Certificate security representing a beneficial ownership interest in a specified PC pool. For additional information on the Guarantor and MultiLender Swap programs see Single-Family Seller/Servicer Guide (Guide) Chapters 6202,and 6203 (Fixed-rate Guarantor), 6202 and 6204 (WAC ARM Guarantor), and 6202 and 6205 (MuIltiLender Swap). Classes of Securities The Securities Industry and Financial Markets Association (SIFMA) established three classes of securities to group mortgages by product type. The table below lists each class title and its associated product type description. Class Class A Class B Class D Description 30- & 20-year securities 15-year securities ARM Securities Settlement Date Schedule SIFMA maintains a settlement schedule that shows the settlement dates for each corresponding class of securities. This schedule is currently called MBS Notification and Settlement Dates and can be found on their website at sifma.org. Freddie Mac publishes a Settlement Date Schedule based on the information released by SIFMA. The Freddie Mac Settlement Date Schedule for Loan Selling Advisor is located in The Learning Center on FreddieMac.com. Follow the steps below to access this schedule: 1. Go to 2. The Sell & Deliver page displays. Select the Freddie Mac Settlement Calendar you want to access. Calendars are issued on a quarterly basis. Selling Mortgages for Securities Using Loan Selling Advisor

18 Guarantor and MultiLender Contracts Following is a sample Freddie Mac Settlement Date Schedule for mortgages sold through Loan Selling Advisor. These schedules are posted in quarterly increments. Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 2 December 2017

19 Guarantor and MultiLender Contracts Master Agreements and other Pricing Identifier Terms A Master Agreement provides the terms for origination, underwriting, delivery and other relevant terms under which Freddie Mac will purchase eligible mortgages over a fixed period of time. Pricing Identifier Terms are terms associated with a Pricing Identifier under which a Seller may sell mortgages to Freddie Mac. A Master Agreement and/or other Pricing Identifier Terms are binding contracts between Freddie Mac and the Seller. These contracts (or Purchase Contracts) contain Seller- and/or Servicer-specific, negotiated terms for the purchase, sale and servicing of mortgages. To obtain Pricing Identifier Terms necessary to sell eligible mortgages to Freddie Mac under the Guarantor or MultiLender Swap programs, the Seller must enter into Pricing Identifier Terms. Your Pricing Identifier Terms will contain the Seller-specific pricing terms under which Freddie Mac will purchase eligible mortgages during a specified period of time. Pricing Identifier Terms incorporate the Guide and any other applicable Purchase Documents by reference. See Guide Chapter 1501 for additional information about Master Agreements and Pricing Identifier Terms. Guarantor and MultiLender Contracts Under the Guarantor and MultiLender executions, you may request the following types of contracts in Loan Selling Advisor: Fixed-Rate Guarantor allows you to sell your conventional fixed-rate mortgages and Federal Housing Administration (FHA)/Department of Veterans Affairs (VA) mortgages in exchange for Freddie Mac Participation Certificates (PCs) representing an undivided interest in the same mortgages. Weighted Average Coupon (WAC) Adjustable Rate Mortgage (ARM) Guarantor allows you to sell your conventional nonconvertible Constant Maturity Treasuries (CMT) - and London Interbank Offered Rate (LIBOR) -indexed ARMs in exchange for WAC ARM PCs MultiLender The MultiLender Swap program allows you to sell your conventional fixed-rate mortgages in exchange for a pro-rata share of Freddie Mac PCs backed by the same mortgages, and in some cases, mortgages sold to Freddie Mac by one or more other Sellers. The MultiLender Swap program is referred to as MultiLender in Loan Selling Advisor SM. General Pooling Requirements and Eligible Products for Guarantor and MultiLender Swap Contracts The following tables contain general pooling requirements and eligible products for Guarantor and MultiLender Swap contracts. For more information, refer to Guide Chapters 6201, 6202, 6203, 6205 for Guarantor and MultiLender Swap programs, and Guide Chapter 6204 for WAC ARM, and Guide Chapter 6203 for Fixed-Rate through Loan Selling Advisor and Guide Chapter 6302 for Mortgage Delivery Instructions. Pooling Requirements for Fixed-Rate Guarantor Contracts Feature Eligible Mortgage Products Special Sales Requirements Description 15-, 20-, and 30- year fixed-rate mortgages Up to 30-year fully amortizing FHA/VA fixed-rate mortgages Refer to Freddie Mac's Single-Family Seller/Servicer Guide Exhibit 17S for more information about eligible products and their requirements Minimum servicing spread of 0.25% Maximum servicing spread of 2.00% Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 2 December 2017

20 Guarantor and MultiLender Contracts Pooling Requirements for Fixed-Rate Guarantor Contracts Feature Eligible Remittance Cycles Settlement Cycles Pooling Requirements Key Benefits Description Choose from three remittance options: Gold Super ARC First Tuesday In Loan Selling Advisor, choose a 3- or 4-day Gold Rush settlement cycle in exchange for a Gold Rush fee, or choose the 5-day standard cycle. 15- and 30-year fixed-rate mortgages must be pooled separately. 20-year fixed-rate mortgages must be pooled separately to receive a 20- year PC prefix. Otherwise, they must be pooled with 30-year fixed-rate mortgages in a 30-year PC prefix. Minimum pooling amount for Gold PCs is $1 million. Minimum pooling amount for mini-gold PCs is $250,000. Fixed-rate super conforming mortgages are TBA eligible as long as they do not exceed 10 percent of the unpaid principal balance of all mortgages in the applicable pool and other applicable de minimis requirements are met. Fixed-rate Freddie Mac Relief Refinance Mortgages with LTV ratios less than or equal to 105 percent may be pooled with other mortgages without additional pooling requirements. Fixed-rate Relief Refinance Mortgages with LTV ratios greater than 105 percent must be pooled separately in PC pools comprised entirely of Relief Refinance Mortgages with LTV ratios greater than 105 percent. These PC pools are not eligible for sale in the TBA market*. * Relief Refinance Mortgages with LTV ratios greater than 105 percent and less than or equal to 125 percent are eligible for Freddie Mac settlements on or after October 1, Receive a Freddie Mac PC that is eligible for Giant PCs and REMICs Increase your profitability with 3- and 4-day Gold Rush settlement cycles in exchange for a Gold Rush fee Choose from several remittance options to manage your servicing float value. Deliver your mortgages on the same day that you take out a Fixed Rate Guarantor Contract. Retrieve/view credit fees in bps and prices. Pooling Requirements for Weighted Average Coupon (WAC) ARM Guarantor Feature Eligible Mortgage Products Description ARMs that adjust using either the 1-Year Weekly Constant Maturity Treasury (CMT) Index or the 1-Year London Interbank Offered Rate (LIBOR) Index Refer to Guide Chapter 4401, and Exhibit 17S for a list of eligible ARM products and Guide Chapter 6201 and Chapter 6202 for information about their pooling requirements Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 2 December 2017

21 Guarantor and MultiLender Contracts Pooling Requirements for Weighted Average Coupon (WAC) ARM Guarantor Feature Special Sales Requirements Minimum Commitment Amount Eligible Remittance Cycles Eligible Settlement Cycles Contract Requirements Key Benefits Description Each eligible ARM product may only be sold on a whole loan basis All ARMs must have an original term of 30 years (360 months) or less Minimum pool size is $500,000 All ARMs must have the same: Index, Lookback Period, Initial Period, Adjustment Period, Initial Cap (see Guide Section (k) for exceptions), and Periodic Cap Adjustable-rate Freddie Mac Relief Refinance Mortgages SM with LTV ratios less than or equal to 105 percent may be pooled with other ARMs without additional pooling requirements. Adjustable-rate Relief Refinance Mortgages with LTV ratios greater than 105 percent are not eligible for sale Minimum commitment amount is $500,000 Choose from two remittance options: First Tuesday or our Accelerated Remittance Cycle (ARC) In Loan Selling Advisor, choose a 3- or 4-day Gold Rush settlement cycle in exchange for a Gold Rush fee, or choose the 5-day standard cycle A WAC ARM Guarantor contract is an optional delivery commitment Minimum servicing spread is 0.25% Maximum servicing spread is 2.00% Receive a Freddie Mac PC, an attractive investment, that is eligible for Giant PCs Reduce your capital costs by swapping and holding WAC ARM PCs Increase your profitability with 3- and 4-day Gold Rush settlement cycles in exchange for a Gold Rush fee Choose from two remittance cycles for your P&I remittances to better manage your servicing float value. Benefit from a competitive securities execution for your ARM products that adjusts based on the CMT- and LIBOR- index Deliver your mortgages on the same day you take out a WAC ARM Guarantor contract Pooling Requirements for MultiLender Swap Feature Eligible Mortgage Products Description Receive a pro-rata share of a Freddie Mac Giant PC for: o Conventional 15- and 30-year fixed-rate mortgages o Conventional 20-year fixed-rate mortgages delivered into 30-year PC pools Receive a pro-rata share of a Freddie Mac Gold PC for: Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 2 December 2017

22 Guarantor and MultiLender Contracts Pooling Requirements for MultiLender Swap Feature Special Sales Requirements Eligible Remittance Cycles Pooling Requirements Description o Conventional 20-year fixed-rate mortgages delivered into 20-year PC pools o Up to 30-year fully amortizing FHA/VA fixed-rate mortgages Refer to Freddie Mac's Single-Family Seller/Servicer Guide Chapter 6201, Chapter 6202, Chapter 6205 or Exhibit 17S for a list of eligible mortgage products and their requirements Your mortgages must fit into one of the Note Rate ranges posted on the major rate services and on the FreddieMac.com MultiLender Pools page Minimum servicing spread is 0.25% Maximum servicing spread is 1.25% Choose from three remittance options: Gold, Super ARC or First Tuesday 15- and 30-year fixed-rate mortgages must be pooled separately 20-year fixed-rate mortgages must be pooled separately to receive a 20-year PC prefix. Otherwise, they must be pooled with 30-year fixed-rate mortgages in a 30-year prefix Up to 30-year fully amortizing FHA/VA fixed-rate mortgages can be pooled together. Additionally, Section 184 Native American and Section 502 GRH Mortgages can be pooled in FHA/VA pools. Minimum commitment amount is $1,000 Fixed-rate super conforming mortgages are TBA eligible as long as they do not exceed 10 percent of the unpaid principal balance of all mortgages in the applicable pool and other applicable de minimis requirements are met. Settlement Settlement Cycle Days Option Funding Option 5-day settlement cycle Standard funding option with no fee 1-, 3- and 4-day settlement cycles Gold Rush funding option in exchange for a Gold Rush fee Key Benefits Get the benefits of a securities execution with a minimum commitment amount of only $1,000 Receive a Freddie Mac PC that is eligible for Giant PCs and REMICs Choose from three remittance options for more flexibility in managing your servicing float value Gold, Super ARC and First Tuesday. Leverage Gold Rush funding the fastest securities settlement in the business and deliver your loans up to the day before settlement in exchange for a Gold Rush fee Sell fixed-rate mortgages, FHA/VA, and many other Freddie Mac mortgage products Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 2 December 2017

23 Guarantor and MultiLender Contracts Contracts in Loan Selling Advisor Within Loan Selling Advisor, the Seller can take out a contract to sell loans to Freddie Mac. The Freddie Mac Single-Family Seller/Servicer Guide (Guide) governs the business relationship between a Seller/Servicer and Freddie Mac relating to the sale and servicing of mortgages. It may be supplemented by other negotiated terms that constitute part of the Seller/Servicer s Purchase Documents (as defined in the Guide Glossary). Loan Selling Advisor is a Purchase Document. See Guide Chapter 1501 for information on Master Agreements and Pricing Identifier Terms that provide Seller- or Servicer-specific negotiated terms, as well as information about Guide Plus Additional Provisions. The process of taking out a contract in Loan Selling Advisor involves requesting a contract price by providing information on the contract parameters. When you receive the price, you will have the option to accept the price and proceed with the contract or reject the price. The Request Price page contains panels that contain subsets of contract parameters. The panel names are Request Price, Product Options, Servicing Options and BUBD Options. The panels can be expanded to view the applicable data fields by clicking the expand button. See example below. Click here to learn more about the contract data fields, data field definitions, valid values and where the data fields reside: Guarantor and MultiLender Contract Data Fields. Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 2 December 2017

24 Guarantor and MultiLender Contracts Contract Details Page The Contract Details page displays after you create a contract and accept the price. This page is often used to manage single contracts. It contains a Summary of Contract Terms and the Contract and Loan Options panels. Following is an example of the Contract Details page. Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 2 December 2017

25 Guarantor and MultiLender Contracts The contract details page contains the following sections: Contract Identifier Information The information in this section contains system derived information such as the nine-digit Freddie Mac assigned Contract Identifier, the two-digit Pool Prefix and the six-digit Pool Number (the first two-digits displayed are the Prefix followed by the four-digit Pool Number). Summary of Contract Terms The data in this section defaults from the contract terms you created and accepted, along with system derived values. The amount for the Allocated Loan UPB will adjust as loans are added to the contract. This amount will equal the total UPB of all loans added to the contract. The Settlement Date is the date when Freddie Mac purchases the mortgages and sells the PCs or Giant PCs to the Dealer/Investor. The Settlement Date is also known in the Guide as the Funding Date. Mortgage delivery must be made in advance to meet the established Settlement Date. The Final Delivery Date is the last day in which the contract delivery requirements must be met. For information on how to meet settlement timelines, click here: Delivery Standards for Guarantor and MultiLender For information on validating the pool and assigning wire instructions, refer to Chapter 9, Security Wire Instructions, in this user guide. Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 2 December 2017

26 Guarantor and MultiLender Contracts Contract Options and Loan Options The Contract Options and Loan Options panels are located in the upper right corner of the Contract Details page. You will use these functions for contract fulfillment and loan delivery purposes. The Loan Options box will only display on the Contract Details page after loans have been allocated to the contract. Contract Options The table below describes the general functions/links available in the Contract Options panel. For detailed instructions on how to access and use these functions, refer to Chapter 2, Guarantor and MultiLender Contracts, in this user guide. Guarantor Contract Options Link Name View/Print Contract Confirmation Modify Contract Add Loan(s) to Contract Import Loans Definition Let s you print your confirmation or save the document or as a PDF. Let syou modify information in a Guarantor or MultiLender contract prior to entering the Settlement Cycle. However, once a contract has entered the Settlement Cycle, you may only modify the Contract Name or Settlement Date fields. Allows you to add loans (Allocate Loans) that currently exist in Loan Selling Advisor s Loan Pipeline to the contract. Let s you import single or multiple loans with complete or partial loan data (provided the minimum required fields are populated). If you import partial data, you can return later to complete the missing required data points. For Guarantor contracts, there are two options to import data in Loan Selling Advisor: Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 2 December 2017

27 Guarantor and MultiLender Contracts Guarantor Contract Options Link Name Void Contract View/Assign Wire Instructions View Change Fee History Representation & Warranty Relief Summary Info Definition MISMO XML Import Loan Product Advisor Let s you cancel a contract up until 8:00 PM (ET) the evening before the Settlement Date of the contract (except for Early Funding contracts) When you cancel a contract, Loan Selling Advisor will perform the following actions: De-allocate the allocated loans from both the contract and the PC Pool. Remove the contract from the Contract Pipeline. Allows you to add, modify or remove wire instructions. Security wire instructions are set at a contract level and indicate where to send the security that is associated with all the mortgages in a Guarantor or MultiLender contract. Assigning wire instructions must be completed for each contract before the settlement date of the contract. Allows you to view a list of modifications made to a contract. This is an enhanced feature of Loan Selling Advisor. For more information, refer to Chapter 11, Additional Functions, in this user guide or contact Customer Support Contact Center (800-FREDDIE). Loan Options The table below describes the general functions/links available in the loan options panel. Guarantor Loan Options Link Name Use this link to Special Notes/Valid Values Enter Settlement Details Evaluate Loan(s) Remove Loan(s) Price Loan(s) Against Contract Access the Enter Settlement Details functionality. Accessing this functionality from the Contract Details page will automatically populate the contract number for you. Access the Evaluate Loan functionality. If the number of loans you are attempting to evaluate is greater than 500, then this link will take you to a Run Evaluation Prompt page where you have the option to continue evaluating or return to previous page Access the Remove Loans functionality to select and remove specific loans from the contract. Price your loans against the contract. This is the only place you can access this functionality. Generally, this is done For more information about how to enter settlement details, refer to Chapter 10, of this guide, Contract Fulfillment and Settlement, in this user guide. For more information about how to evaluate loans, refer to Chapter 5, Manage Loans, in this user guide. Removed loans will remain in the Loan Pipeline until they are deleted. You must Price Loans Against Contract before the contract enters the settlement cycle. Selling Mortgages for Securities Using Loan Selling Advisor Page 11 Chapter 2 December 2017

28 Guarantor and MultiLender Contracts Guarantor Loan Options Link Name Use this link to Special Notes/Valid Values automatically by Loan Selling Advisor after the loans are allocated to the contract. Build Form 996E Build Form 1034E Build Bill of Sale Access the Manage Settlement Forms functionality. Accessing this functionality from the Contract Details page will automatically populate the contract number for you. Access the Create/View Certification forms: Build page where you can build the 1034E for the selected loan. Build page where you can build the Bill of Sale for a selected loan. Bill of Sale must be approved in order for the contract to be in RTF. For more information about how to build Form 996E, refer to Chapter 7, Warehouse Lender Release Process, in this user guide. For more information about how to build Form 1034E, refer to Chapter 8, Note Certification Process, in this user guide. For more information about how to build Form 996E, refer to Chapter 7, Warehouse Lender Release Process, in this user guide. Loan Summary Information The Loan Summary Information contains summary-level loan status information. This can be used in conjunction with the Contract Pipeline for status and tracking purposes. Pricing Information This section provides a link to View Pricing Details. It will also provides the Credit Fee Yield (bps), Credit Fee Price (bps) and Credit Fee Fixed Dollar ($). Servicing Options This section contains information specific to the servicing of the mortgages allocated against the contract. The terms displayed in this section default from the contract terms and, if applicable, the terms stipulated in your Master Agreement and/or Pricing Identifier Terms. Selling Mortgages for Securities Using Loan Selling Advisor Page 12 Chapter 2 December 2017

29 Guarantor and MultiLender Contracts BU/BD Options This section will display pricing information specific to the contract. It includes BU/BD information and is specific to max BU/BD on the contract. (Max BD is usually the credit fee in yield plus payroll tax and the max BU is usually does not exceed the servicing fee. Click the relevant links to view additional pricing details. Selling Mortgages for Securities Using Loan Selling Advisor Page 13 Chapter 2 December 2017

30 Guarantor and MultiLender Contracts Contract Pipeline The contract pipeline makes it easy for you to manage your contracts and quickly view and check the status of your contracts. The contract pipeline provides summary information about accepted and fulfilled contracts for Cash, Guarantor and Live BU/BD Trades. For detailed instructions on how to access and view the contract pipeline pages, refer to Chapter 4, Take Out Guarantor and MultiLender Contracts, in this user guide. Selling Mortgages for Securities Using Loan Selling Advisor Page 14 Chapter 2 December 2017

31 Chapter Rate Sheet 3 Overview This chapter is designed to help you understand the overall process for requesting a Rate Sheet in Loan Selling Advisor for Guarantor and MultiLender contracts. The Guarantor Rate Sheet ( Rate Sheet ) gives you a fast and efficient way to receive pricing information up front - prior to creating your contract and allocating loans. You can create a Rate Sheet any time, before or after creating a contract. The Rate Sheet prices are specific to the pricing terms in your Master Commitment. The Master Commitment number is known in Loan Selling Advisor as the Pricing Identifier. If you have multiple Master Commitments with Freddie Mac, you will have Multiple Pricing Identifiers and can generate multiple Rate Sheets. Your Rate Sheet Price results include Indication Pricing only, and the most common components of the Guarantor and MultiLender execution are Credit Fees, such as Credit Fees in Yield (formerly Required Spreads) and Credit Fees in Price (formerly delivery fees) Eligibilities and BU/BD Ratios. Request Rate Sheet Rate Sheets that you generate through Loan Selling Advisor will remain in Loan Selling Advisor for seven calendar days. Follow these steps to generate a Rate Sheet for Guarantor and MultiLender contracts. 1. From the main menu, select Contracts and then click Guarantor Pricing & Contracts. 2. The Pricing Identifier automatically populates, unless you have more than one available for your organization. If so, select one from the drop-down menu. Selling Mortgages for Securities Using Loan Selling Advisor

32 Rate Sheet 3. Select Rate Sheet in the Price Request Type field. After making your selection, the Execution Path and Creation Method fields will automatically populate. 4. Click Next. The Request Rate Sheet section will display. 5. Select your options from the Request Rate Sheet page and click Request Price. The following table describes the options available on the Request Rate Sheet page. Option Rate Sheet Type Security Product Definition All Pricing All Pricing without BU/BD BU/BD Choose one or more of the following: If you select All Fixed Products Then The Rate Sheet includes all fixed-rate products, which are highlighted in the box to the right All ARM Products Specific Products You can select specific Security products from the box on the right. To select multiple Security Products, use the <Ctrl>key while selecting the specific Security Products. The Rate Sheet includes all adjustable-rate mortgages The Rate Sheet includes only the selected Security Products. Example: Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 3 December 2017

33 Rate Sheet Option Settlement Date Range Definition Enter a Settlement Date Range up to 90-days from the current date. 6. After clicking Request Price, the Rate Sheet Selection page displays (a.k.a. the results table). The table will include the price request that you just submitted as the very first item on the list, followed by the past seven-day history (calendar days) of generated Rate Sheets. The table identifies them by the Pricing Identifier, File Name, User ID, Request Date/Time and Status (In Progress, Completed or Error). 7. If the File Status is In Progress, click the Update Results button in the upper left of the page to update the status. The following table provides the definition for each status: Status In Progress Completed Error Definition Rate Sheet is being generated. Click Refresh Page to update the status. Rate Sheet has been generated. Click the link in the File Name field to view the Rate Sheet. Rate Sheet generation failed. Click the Error link in the Status field to view details. Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 3 December 2017

34 Rate Sheet 8. To view a Rate Sheet, click the File Name and the Rate Sheet Results page displays. The results you receive are Indication Pricing. In addition, Market Based Credit Fees, if applicable, are available only during market business hours. As shown in the following example, the Rate Sheet is broken down into sections. Each section contains pricing information related to the Pricing Identifier associated with the Rate Sheet. Depending on your Pricing Identifiers, the following sections will display: Eligibilities BU/BD Ratios Credit Fee Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 3 December 2017

35 Rate Sheet 9. To view the detailed pricing information applicable for each section, click on the corresponding View hyperlinks (As shown in the example above). 10. To print or export the Rate Sheet, select the section you want by clicking the check box next to the field. Click the Print or Export button located at the bottom of the page. 11. When exporting, the Rate Sheet results export in separate zip files, one for each applicable section of the Rate Sheet, in XML format. 12. To print or export all available options, click the check box next to Select All at the top of the page. If a section such as BU/BD does not apply to your Pricing Identifier, it will not display in your Rate Sheet. Refer to the following table for a description of each section. Section Eligibilities Description The Eligibilities section will display attributes based on the Pricing Identifier Terms. It will define the type of business a seller can participate in, for example, 30 Year FHA/VA. Click the View link to launch a.pdf document containing Pricing Identifier Terms Information. This provides a summary view of the Pricing Identifier Terms, and details the Customer Information and Market Share Information. Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 3 December 2017

36 Rate Sheet Section BU/BD Ratios Credit Fee Description Access Buyup/Buydown Grids for fixed-rate security product types of: 15-, 20- and 30- Year Gold PC 15-, 20- and 30- Year Gold Mini-PC Access Credit Fee grids in the following categories: Credit Fee in Yield Payroll Tax Cut CFY 30yr, 20yr and 15yr FRM ARMS CFY Credit Fee in Price HP/HPA Fees and Cap Cooperative Share Custom MI Relief Refi Fees and Cap Additional Fees Second home Freddie Mac does not currently have a fee assessed in Fixed Dollar. Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 3 December 2017

37 Chapter 4 Take out a Guarantor or MultiLender Contract Overview The Single-Family Seller/Servicer Guide (Guide) governs the business relationship between a Seller/Servicer and Freddie Mac as it pertains to the sale and servicing of mortgages. The Guide may be supplemented by other negotiated terms that constitute part of the Seller/Servicer s Purchase Documents (as defined in the Guide Glossary). See Guide chapter 1501 for more information about Master Agreements and Pricing Identifier Terms that provide Seller- or Servicer-specific negotiated terms and information about Guide Plus Additional Provisions. Before You Take Out a Contract You must assign and manage your wire instructions for Mortgages you sell under the Guarantor and MultiLender Swap programs through Loan Selling Advisor. When you are ready to take out a Guarantor or MultiLender contract in Loan Selling Advisor, ensure that security wire instructions are set up and saved in Loan Selling Advisor. Wire instructions must be approved and assigned by 8:00 pm Eastern Time one day before the Settlement Date of the Contract. Refer to chapters 9 and 10 of this user guide for information on how to set up and approve the security wire instructions and the user roles associated with these tasks. Chapter 9: Security Wire Instructions Chapter 10: Contract Fulfillment and Settlement Import Contracts The Import Contract function lets you quickly import your contract data into Loan Selling Advisor to create and price a contract. Please note all fields marked with an asterisk must be completed. 1. From the main menu, select Contracts, and then Guarantor Pricing & Contracts. 2. The Request Price page will display. Pricing Identifier is automatically populated. If you have more than one Pricing Identifier, you can select one from the drop-down menu. Selling Mortgages for Securities Using Loan Selling Advisor

38 Take Out a Guarantor or MultiLender Contract 3. The Price Request Type field will then appear. Click the Contract radio button. 4. The Execution Path and Creation Method fields will appear. Execution Path will be auto populated with Guarantor. For Creation Method, select the Import radio button, then click Next. 5. The Request Price page displays. Under Import Contract, click Browse to search for your import file. 6. Select the file (which must be in XML format) and click Open. When the file name displays in the File Location field, click Import Contracts. Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 4 December 2017

39 Take Out a Guarantor or MultiLender Contract 7. The View Import Contract Results page displays, listing all files imported during the past seven calendar days, with the most recent on top. 8. Ensure the files show a status of Completed. If the Status is In Progress, click the Update Results button to update the status. Large import files may take some time to process, so while the import is in process, you can perform other tasks in the system. You can return to View Import Contract Results when the status is completed. Click here to learn more about the columns of information available in the View Import Contract Results page. FreddieMac.elearningserver.com/ At this point, there are three options for proceeding: If you want to 1. View the Summary of Import Results Then Click the Completed link in the Status column. 2. Price a contract Click the header of the last column, Price Contracts, and then proceed to Step Exit without taking any action on the contract(s) Click the back button in your web browser. Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 4 December 2017

40 Take Out a Guarantor or MultiLender Contract 10. Once the Status shows Completed, and you choose to click Price Contracts, the Price Results page displays. This page contains the following: A. Pricing timer B. Price agreement and required acknowledgement checkbox C. Investor Contract Identifier number D. Price Requested: Pricing Terms E. Price Requested: BUBD Options (including a link to View Buyup/Buydown Ratios) Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 4 December 2017

41 Take Out a Guarantor or MultiLender Contract The pricing timer will vary depending on the type of contract you are pricing. You must accept the contract price before the timer expires as follows: Contract Type Guarantor Contracts with Live Pricing Guarantor & Live BUBD Trade Contract Modifications (Pair Offs, Upsizing, Extensions) Live BUBD Trade Contracts Guarantor Contracts with Static Pricing Time Limit 1 minute 1 minute 2 minutes 10 minutes If you imported a single contract, the Price Results page will display the price results and the Accept and Reject buttons at the bottom of the page. If you imported multiple contracts, the Price Results page will display the results for all the contracts you imported. You can accept or reject individual contracts by clicking the check box next to each contract, or select-all by clicking the checkbox at the top of the column. Accept Imported Contract(s) To accept the contract(s), you must do the following before your timer expires: 1. Review and accept the terms stated in the Acknowledgement check box by clicking the acknowledgment checkbox. 2. Accept or Reject the contract(s) as follows: If you want to Accept a single contract Accept multiple contracts Then Click the Accept button and the system will advance you to the Contract Details Page. Select the contracts you would like to accept by clicking the check box next to each individual contract, or select all contracts at once by clicking the box at the top of the column, and then click Request Price. 3. Click Submit to take out the contract or Cancel to exit the process without taking out a contract. 4. If you select Submit, the Summary of Contracts Accepted page displays. This contract is now open. 5. Click the link in the Investor Contract Identifier column to view the Contract Details page. Following is an example. Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 4 December 2017

42 Take Out a Guarantor or MultiLender Contract Refer to Chapter 2 - Guarantor and MultiLender Contracts of this user guide for details on the information available on the Contract Details page and how to navigate through the links available in the Contract Options and Loan Options boxes. Use this link to access the import Guarantor contract technical specification file: Import Guarantor Contracts XML Format Interface Specification Manual. Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 4 December 2017

43 Take Out a Guarantor or MultiLender Contract Manually Take Out a Contract Overview If you do not import contracts, you can manually create them in Loan Selling Advisor. This section provides step-by-step instructions on how to manually create a contract and request a contract price for the following contract types: Guarantor Fixed-rate MultiLender Guarantor WAC ARM Guarantor Live Buyup/Buydown (BU/BD) Trade The process for creating a contract is the same, whether it is Fixed-Rate, MultiLender or WAC ARM. However, some functions and/or input fields may vary slightly between each contract type. Navigation Loan Selling Advisor has navigational features to help you manually take out a contract. Familiarize yourself with these features before begining the process of entering a contract. 1. The manual entry process is broken down into four sections as shown here. Although there will be opportunity to go back and edit the different sections, initially, they must be completed in the order in which they appear. 2. All fields marked with an * are required and must be completed before continuing from one section to the next. 3. Loan Selling Advisor will auto-populate data fields and add new data fields in real-time while you navigate the manual entry process. This means: As you complete each field New fields may immediately appear on your page based on the information you have provided. Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 4 December 2017

44 Take Out a Guarantor or MultiLender Contract If you change a response you previously entered Some fields that may have previously appeared during the entry process, may immediately disappear. 4. Once you have successfully completed a section, click Next. That section will then collapse and the next section in the process will appear. In this example, the Request Price section has been completed successfully, so the Product Options section appears on the page. 5. For definitions and additional information on data fields, click the data field name and a pop-up window will appear with detailed information about that field. 6. To return to previous sections and make edits, click the + sign to the left of the section header. The section will expand. Click the Edit button in the upper right corner and the fields will be available for editing. When finished, click Next to return to the manual entry process. Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 4 December 2017

45 Take Out a Guarantor or MultiLender Contract Following are four sets of instructions for manually entering each contract request type: Fixed Rate Single Issue Contract Guarantor WAC ARM Contract Live BU/BD Trade MultiLender Contract Follow the appropriate set of instructions for the contract that you would like to manually enter in the system. For questions regarding navigation, refer to the instructions above. Manually Take Out a Fixed Rate Single Issue Contract Follow the steps below to take out a Fixed Rate Single Issue contract. 1. From the main menu, select Contracts and then Guarantor Pricing & Contracts. 2. The Request Price page will display. 3. Pricing Identifier is automatically populated. If you have more than one Pricing Identifier, you can select one from the drop-down menu. 4. The Price Request Type field will then appear. Select Contract. Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 4 December 2017

46 Take Out a Guarantor or MultiLender Contract 5. The Execution Path will default to Guarantor. For Creation Method, select Manual. Then click Next. 6. Select the Price Request Type of Contract (to create a contract). Select Guarantor as the Execution Path and Manual as the Creation Method. 7. Click Next and the Product Options section displays. 8. If desired, enter a name in the Contract Name field. This field is sometimes used for tracking purposes. 9. In the Delivery Type field, select the appropriate Delivery Type. Note that the Delivery Type field is a selection if you are eligible for both Mandatory and Optional contracts. If not, it will automatically populate. 10. In the Pool Type field, select Single Issue. 11. From the Product Type drop-down menu, select the product. 12. From the Security Product drop-down menu, select the Security Product. Click the Show Details link to view the Security Product details. Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 4 December 2017

47 Take Out a Guarantor or MultiLender Contract 13. From the LTV Ratio Percent Range drop-down menu, select the applicable range or select Standard. 14. The Prepayment Penalty Indicator field defaults to False. 15. In the Specified Pool field, select either No or Yes. If you are not eligible for Specified Pools, this will default to No. If you selected Then Yes You ll go to the Specified Pool Type field (Step 16) No You ll go to the Security Coupon field (Step 17) 16. If you selected Yes for Specified Pool, you must complete the Specified Pool Type field. Make your selection from the drop-down menu. 17. In the Security Coupon field, enter the interest rate as a percentage. 18. In the Early Funding Indicator field, select Yes or No. If you select Yes for Early Funding Indicator, you must complete the Early Funding Target Date. Click here to learn more about Early Funding contracts: FreddieMac.com/learn/pdfs/deliver/deliv_ef_contracts.pdf 19. In the Settlement Date field, enter the desired Settlement Date in mm/dd/yyyy format, or select a date by clicking the calendar icon. 20. Click the Settlement Cycle Days drop-down menu to select the number of settlement cycle days. The UPB Level field will automatically populate based on your eligibility. If Security Coupon Level is populated go to the next step. If Note Rate Level is populated, enter the Note Rate Range from the drop-down menu and enter the Note Rate Amount. 21. You can add or delete additional Note Rate Ranges and Note Rate Amounts by clicking the + or X signs. The Total UPB will automatically calculate depending on individual UPBs added for each Note Rate Range. This amount will automatically populate in the Total Note Rate Amount field. 22. The Credit Enhancement field automatically populates, depending on the terms of your contract with Freddie Mac. If you are eligible for Credit Enhancements, you will have the option to indicate Yes or No. If you select Credit Enhancement = Yes, then you will need to complete the CE Type, CE Level and CE Sunset Period fields. 23. Click Next and the Servicing Options section will display. Selling Mortgages for Securities Using Loan Selling Advisor Page 11 Chapter 4 December 2017

48 Take Out a Guarantor or MultiLender Contract 24. Select the Servicing Option by clicking on the drop-down menu. If you have one Servicer Option, it will automatically populate in this field. 25. Select the Designated Servicer # by clicking on the drop-down menu. If you have one Designated Servicer #, it will automatically populate. 26. In the Minimum Required Servicing Spread field, enter the amount as a percentage. 27. If the Remittance Option does not automatically display, click the Remittance Option drop-down menu to make your selection. 28. The Interest/Principal Remittance Type and Prepayment Remittance Due Days fields automatically populate. 29. Click Next and the BU/BD Options section will display. Selling Mortgages for Securities Using Loan Selling Advisor Page 12 Chapter 4 December 2017

49 Take Out a Guarantor or MultiLender Contract 30. From the Buyup/Buydown Program drop-down menu, select the desired program. If you select Note Level Loan Level Then The BU/BD Option drop-down menu displays. Based on the option you select; you will then enter the BU/BD Maximum levels in basis points (bps). If you select Neither Buy up nor Buy down, you will not need to make any additional selections. The Buyup Maximum and Buydown Maximum fields automatically populate. 31. Click Request Price and Price Results information will display. Selling Mortgages for Securities Using Loan Selling Advisor Page 13 Chapter 4 December 2017

50 Take Out a Guarantor or MultiLender Contract 32. Select from the following options. To Accept the quoted price Reject the quoted price Then 1. Click the acknowledgement check box. 2. Click the hyperlink(s) to view Pricing Details or Buyup/Buydown Ratios. 3. Click Accept before the timer expires and you will be taken to the Contract Details page. 1. Click Reject. 2. Select whether you want to Modify or Re-Price the contract. Refer to the table below for information regarding time allotments. Note the time span for contract acceptance varies based on the type of pricing you are requesting. 1 minute For contracts with a Mandatory Delivery Type selected or Live BUBD or Credit Fee pricing components (e.g., Live Dollar MAP or Live BUBD for the product) 2 minutes Live BUBD Trade contracts 10 minutes For Optional pricing Selling Mortgages for Securities Using Loan Selling Advisor Page 14 Chapter 4 December 2017

51 Take Out a Guarantor or MultiLender Contract If you accept the terms, you will advance to the Contract Details page which includes the full Summary of Contract Terms. You can also link to other Contract Options and view/print the summary. Following is an example of a Contract Details page for a Fixed Rate Single Issue contract. Selling Mortgages for Securities Using Loan Selling Advisor Page 15 Chapter 4 December 2017

52 Take Out a Guarantor or MultiLender Contract Manually Take Out a Guarantor WAC ARM Contract Follow the steps below to take out a Guarantor Weighted Average Coupon (WAC) Adjustable Rate Mortgage (ARM) contract. 1. From the main menu, select Contracts and then Guarantor Pricing & Contracts. 2. The Request Price page will display. 3. Pricing Identifier is automatically populated if your organization does not have more than one. If you have multiple Pricing Identifier Terms, you can select the applicable Pricing Identifier from the drop-down menu. 4. Select the Price Request Type of Contract (to create a contract). Select Guarantor as the Execution Path and Manual as the Creation Method. 5. Click Next and the Product Options section displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 16 Chapter 4 December 2017

53 Take Out a Guarantor or MultiLender Contract 6. If desired, enter a name in the Contract Name field. Note that the Delivery Type field automatically populates. 7. In the Pool Type field, select Single Issue. 8. From the Product Type drop-down menu, select the appropriate product. ARM products are represented by either LIBOR or CMT. 9. From the Index Source Type drop-down menu, select the appropriate Index Source (e.g., LIBOR One Year WSJ Daily or 1-Year Constant Maturity (CMT)). 10. From the Security Product drop-down menu, select the appropriate option. 11. The LTV Ratio Percent Range field will automatically populate. You can click the Show Details link to view product details. 12. In the Prepayment Penalty Indicator field, select either True or False. After selecting your option, the Interest and Payment Adjustment Index Lead Days Count field automatically populates. 13. In the Specified Pool field, select either No or Yes. Based on your previous entries, this field may automatically default to NO based on the eligibility set up. Selling Mortgages for Securities Using Loan Selling Advisor Page 17 Chapter 4 December 2017

54 Take Out a Guarantor or MultiLender Contract If you selected Then Yes You ll go to Specified Pool Type field (Step 14) No You ll go to Early Funding Indicator field (Step 15) 14. Make your selection from the Specified Pool Type drop down menu, if applicable. 15. For the Early Funding Indicator field: If you selected Yes No Then You ll need to complete the Early Funding Target Date field. Enter this date by either typing it in or by clicking the calendar icon and selecting the date. You ll need to complete the Settlement Date field. 16. Click the Settlement Cycle Days drop-down menu to select the desired number of settlement cycle days. The UPB Level field automatically populates. 17. Enter the desired Security Amount in the Security Amount field. Note the Credit Enhancement field automatically populates, depending on the terms of your contract with Freddie Mac. 18. Click Next and the Servicing Options section displays. 19. Select a Servicing Option and Designated Servicer #. If there is more than one Servicing Option and Designated Servicer, these two fields are not automatically populated. (i.e. If the Servicing Option is Retained and CTOS, the seller must make a selection). Selling Mortgages for Securities Using Loan Selling Advisor Page 18 Chapter 4 December 2017

55 Take Out a Guarantor or MultiLender Contract 20. Enter the following information as percentages: Minimum Contract Servicing Coupon Minimum Contract Servicing Net Margin Minimum Contract Servicing Lifetime Ceiling 21. Click the Remittance Option drop-down menu to select the desired remittance option. After you ve select this, the Interest/Principal Remittance Type and Prepayment Remittance Due Days fields automatically populate. 22. Click Next and the BUBD Options section displays. 23. The Buyup/Buydown Program and Buy Up/Buy Down Option fields automatically populate. 24. Click Request Price and the Price Results page displays with your pricing information. Selling Mortgages for Securities Using Loan Selling Advisor Page 19 Chapter 4 December 2017

56 Take Out a Guarantor or MultiLender Contract The timer span varies based on the type of pricing you are requesting: For Mandatory/Live pricing For Optional pricing For modifying the contract 1 minute 15 minutes 10 minutes 25. Review the information and, if acceptable, click the checkbox to confirm your acknowledgement. 26. Follow the steps provided in the table below: To Accept the quoted price Then 1. Click Accept before the timer expires. 2. Review the Contract Details page when it displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 20 Chapter 4 December 2017

57 Take Out a Guarantor or MultiLender Contract To Then 3. Click the hyperlink(s) to view Pricing Details or Buyup/Buydown Ratios. Reject the quoted price 1. Click Reject 2. Select whether you want to Modify or Re-Price the contract. If you accept the terms, you will advance to the Contract Details page which includes the full Summary of Contract Terms. You can also link to other Contract Options and view/print the summary. A detailed description of the Contract Details page can be found in Chapter 2 Guarantor and MultiLender Contracts of this guide. Following is an example of a Contract Details page for a Guarantor WAC ARM Guarantor contract. Selling Mortgages for Securities Using Loan Selling Advisor Page 21 Chapter 4 December 2017

58 Take Out a Guarantor or MultiLender Contract Selling Mortgages for Securities Using Loan Selling Advisor Page 22 Chapter 4 December 2017

59 Take Out a Guarantor or MultiLender Contract Manually Take Out a Live BU/BD Trade The Live BU/BD trade option allows you to take out a contract to include mortgages with a wider range of Note Rates in your PCs while managing excess servicing and retaining more cash up-front. Follow these steps to manually take out a Live BU/BD Trade. 1. From the main menu, select Contracts and then Guarantor Pricing & Contracts. The Request Price page will display. 2. Pricing Identifier is automatically populated if your organization has only one. If you have multiple Pricing Identifiers, you can select the applicable Pricing Identifier from the drop-down menu. 3. Select the Price Request Type of Contract (to create a contract). 4. Select Live BUBD Trade as the Execution Path. The Creation Method is automatically populated. 5. Click Next and the Product Options section displays. 6. If desired, enter a name in the Contract Name field. Note that the Delivery Type field automatically populates. 7. In the Pool Type field, select Single Issue. 8. From the Product Type drop-down menu, select the appropriate product. Selling Mortgages for Securities Using Loan Selling Advisor Page 23 Chapter 4 December 2017

60 Take Out a Guarantor or MultiLender Contract 9. From the Security Product drop-down menu, select the appropriate product. After selecting, you can click the Show Details link to view product details. 10. Make your selection from the Specified Pool drop down menu. If you selected Then Yes You ll go to Specified Pool Type field (Step 11) No You ll go to Settlement Date field (Step 12) 11. Make your selection from the Specified Pool Type drop down menu. 12. In the Settlement Date field, enter the desired Settlement date in mm/dd/yyyy format. Alternatively, you can click the calendar icon and choose the date from the calendar. 13. Click Next and the Servicing Options section displays. Select a Servicing Option and Designated Servicer #. If there is more than one Servicing Option and Designated Servicer, these two fields are not automatically populated. (i.e. If the Servicing Option is Retained and CTOS, the seller must make a selection). 14. In the Minimum Required Servicing Spread field, enter this amount as a percentage. 15. Click Next; the BU/BD Options section displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 24 Chapter 4 December 2017

61 Take Out a Guarantor or MultiLender Contract 16. The Settlement Date, Live BUBD Trade Deadline, SIFMA Settlement Date, and Buyup Maximum and Buydown Maximum fields automatically populate. 17. Select from the following for BU/BD Options: Field BU/BD tabs Definition If You want to enter Buyup total scheduled UPB and associated BPS for each note range and remaining maturity You want to enter Buydown total scheduled UPB and associated BPS for each note range and remaining maturity Import Live trade information Then Select the Buyup tab Select the Buydown tab Click Import Live Trade Form Selling Mortgages for Securities Using Loan Selling Advisor Page 25 Chapter 4 December 2017

62 Take Out a Guarantor or MultiLender Contract Field Note Rate Range Remaining Maturity Definition Use the Note Range fields to select the Note Rate ranges for which you want to buyup or buydown. Click the + to expand each field, if needed to input multiple entries for a Note Rate Range/Remaining Maturity combination. Use the Remaining Maturity fields to select the Remaining Maturity for the loans in the contract from the following ranges: Click Request Price. A Live Buy-up Buy-down contract displays, with a two-minute timer. Selling Mortgages for Securities Using Loan Selling Advisor Page 26 Chapter 4 December 2017

63 Take Out a Guarantor or MultiLender Contract 19. This page is divided into the following sections: Section Agreement Live BUBD Trade Contract Summary Live BUBD Trade Contracts Results Description Identifies the terms and conditions, and includes a checkbox for acknowledging that you have read and agree with these terms and conditions. Lists the contract parameters, including the Security Product, Settlement Date, Live BUBD Trade Deadline, SIFMA Settlement Date, Pool Type, and Total Buyup UPB and Total Buydown UPB. Includes tabs for Live BUBD Ratios and Live BUBD Pricing Details. When you click Live BUBD Pricing Details, you can toggle between Buyup and Buydown tabs, both providing additional details. 20. After viewing the contract information, scroll to the bottom of the page and choose from the following options: If you click Reject Accept Then You can scroll back to the bottom of the page and choose to either Reprice or Modify the contract. If you choose to re-price, the system provides another contract offer based on the information you entered in steps The system assigns a Live BUBD Trade Identifier, and opens the contract. If you accept the terms, you will advance to the Contract Details page which includes the full Summary of Contract Terms. You can also link to other Contract Options and view/print the summary. Following is an example of Contract Details page for Live Buy-Up/Buy-Down Trade. Selling Mortgages for Securities Using Loan Selling Advisor Page 27 Chapter 4 December 2017

64 Take Out a Guarantor or MultiLender Contract Manually Take Out a MultiLender Contract Taking out a MultiLender contract allows you to receive a pro-rata share of a Freddie Mac Participation Certificate (PC) for a minimum commitment of only $1,000. Follow the steps below to manually take out a MultiLender contract. 1. From the main menu, select Contracts and then Guarantor Pricing & Contracts. 2. The Request Price page will display. Selling Mortgages for Securities Using Loan Selling Advisor Page 28 Chapter 4 December 2017

65 Take Out a Guarantor or MultiLender Contract 3. Pricing Identifier is automatically populated if your organization does not have more than one. If you have multiple Pricing Identifiers, you can select the applicable Pricing Identifier from the dropdown menu. 4. Select the Price Request Type of Contract (to create a contract). Select Guarantor as the Execution Path and Manual as the Creation Method. 5. Click Next and the Product Options section displays. 6. If desired, enter a name in the Contract Name field. 7. The Delivery Type field automatically populates. Selling Mortgages for Securities Using Loan Selling Advisor Page 29 Chapter 4 December 2017

66 Take Out a Guarantor or MultiLender Contract 8. In the Pool Type field, select MultiLender. 9. From the Product Type drop-down menu, select the appropriate product. 10. The Security Product field automatically populates. Click the Show Details link to view the Security Product details. Note that the LTV Ration Percent Range and Prepayment Penalty Indicator fields automatically populate. 11. From the Available Security Coupon and Pool Numbers drop-down menu, select the desired Security Coupon. Note that the Specified Pool field automatically populates to NO. 12. For the Early Funding Indicator field: If you selected Yes No Then You ll need to complete the Early Funding Target Date field. Enter this date by either typing it in or by clicking the calendar icon and selecting the date. You ll need to complete the Settlement Date field. Ensure this is a valid Settlement date by consulting the Freddie Mac Settlement Date Calendar. 13. Click the Settlement Cycle Days drop-down menu to select the desired number of settlement cycle days. 14. In the UPB Level field, click the radio button that corresponds with the desired UPB level. If you selected Then Security Coupon Level You ll go to the Security Amount field (Step 16) Note Rate Level The Note Rate Range and Note Rate Amount table displays (Go to Step 15) 15. In the Note Rate Range and Note Rate Amount table, select a Note Rate Range from the dropdown box. Enter the Note Rate Amounts based on the selected range. You ll use the + sign to add additional ranges, and X to remove ranges. After you ve entered this information, the Total Note Rate Amount automatically displays the amounts you ve entered. 16. In the Security Amount field, enter the desired Security amount. Note: This will only display if you selected Security Coupon Level in Step 14. Also, note that the Credit Enhancement field automatically populates, depending on the terms of your contract with Freddie Mac. 17. Click Next; the Servicing Options section displays. If there is more than one Servicing Option and Designated Servicer, these two fields are not automatically populated. (i.e. If the Servicing Option is Retained and CTOS, the seller must make a selection). Selling Mortgages for Securities Using Loan Selling Advisor Page 30 Chapter 4 December 2017

67 Take Out a Guarantor or MultiLender Contract 18. Enter the Servicing Option and Designated Servicer #. If there is more than one Servicing Option and Designated Servicer, these two fields are not automatically populated. (i.e. If the Servicing Option is Retained and CTOS, the seller must make a selection). 19. In the Minimum Required Servicing Spread field, enter this amount as a percentage. 20. From the Remittance Option drop-down menu, select the desired remittance option. After selecting this option, the Interest/Principal Remittance Type and Prepayment Remittance Due Date fields automatically populate. 21. Click Next; the BU/BD Options section displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 31 Chapter 4 December 2017

68 Take Out a Guarantor or MultiLender Contract 22. From the Buyup/Buydown Program drop-down menu, select the desired program. If you selected Note Level Loan Level Then The Buy Up/ Buy Down Option drop-down menu displays. Based on the option you select, you will then enter the Buyup and/or Buydown Maximum levels in basis points (bps). If you select Neither Buy up nor Buy down, you will not need to make any additional selections. The Buyup Maximum and Buydown Maximum fields automatically populate. 23. Click Request Price. The Price Results information displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 32 Chapter 4 December 2017

69 Take Out a Guarantor or MultiLender Contract Selling Mortgages for Securities Using Loan Selling Advisor Page 33 Chapter 4 December 2017

70 Take Out a Guarantor or MultiLender Contract 24. Select from the following options. To Accept the quoted price Reject the quoted price Then 1. Click the acknowledgement 2. Click the View Pricing Details link, if desired 3. Click Accept before the 60-second timer expires 4. Review the Summary of Contract Terms when it displays 1. Click Reject 2. Select whether you want to Modify or Re-Price the contract 25. Review the information and if acceptable, click the checkbox to confirm your acknowledgement. Note the timer span varies based on the type of pricing you are requesting: For Mandatory/Live pricing For Optional pricing For modifying the contract 1 minute 15 minutes 10 minutes 26. Click the hyperlink(s) to view pricing details or Buyup/Buydown ratios by remaining maturity. Follow the steps provided in the table below: To Accept the quoted price Reject the quoted price Then 1. Click Accept before the 10-minute timer expires 2. Review the Contract Details page when it displays 1. Click Reject 2. Select whether you want to Modify or Re-Price the contract Following is an example of a Price Expiration / Rejection page: Selling Mortgages for Securities Using Loan Selling Advisor Page 34 Chapter 4 December 2017

71 Take Out a Guarantor or MultiLender Contract Selling Mortgages for Securities Using Loan Selling Advisor Page 35 Chapter 4 December 2017

72 Take Out a Guarantor or MultiLender Contract If you accept the terms, you will advance to the Contract Details page which includes the full Summary of Contract Terms. You can also link to other Contract Options and view/print the summary. Following is an example of a Contract Details page for MultiLender contract. Selling Mortgages for Securities Using Loan Selling Advisor Page 36 Chapter 4 December 2017

73 Take Out a Guarantor or MultiLender Contract Contract Options and Loan Options The Contract Options and Loan Options panels are in the upper right corner of the Contract Details page. You will use these functions for contract fulfillment and loan delivery purposes. The functions available to you will vary based on the contract type. For example, a contract that has exercised the Early Funding Option will see a function titled Finalize Early Funding Contract, whereas a non-early Funding contract will not. The Loan Options box will only display on the Contract Details page after loans have been allocated to the contract. The following tables identify the contract options functionalities based on the type of contract: Guarantor: Mandatory and Optional Contracts Contract Function View/Print Contract Confirmation Description View, Print or Save (as PDF) the Contract Confirmation. Following is an example of a Guarantor Contract Confirmation. Selling Mortgages for Securities Using Loan Selling Advisor Page 37 Chapter 4 December 2017

74 Take Out a Guarantor or MultiLender Contract Guarantor: Mandatory and Optional Contracts Contract Function Description Modify Contract You may modify Guarantor and MultiLender contracts under the following circumstances: Modify Contract: Fixed Rate Guarantor, MultiLender Guarantor or WAC ARM Guarantor Contract Type Optional Contract with an Accepted or Ready to Fund Status* Mandatory Contract with an Accepted Status* Optional or Mandatory Contracts with Status of Settlement Locked* Data Modifiable Data Fields All applicable contract data fields All applicable contract data fields except the Pricing Identifier Contract Name Security Amount Settlement Date o Must be in the same settlement month o Not applicable for WAC ARM Guarantor contracts * Early Funding Contracts cannot be modified with a Contract Status of Ready to Fund or Settlement Locked. Contract Impacts: 1. If you modify a contract, Loan Selling Advisor will require you to re-validate your pool. 2. You may cancel a contract until 8:00 PM Eastern time, the evening before the Settlement Date. Selling Mortgages for Securities Using Loan Selling Advisor Page 38 Chapter 4 December 2017

75 Take Out a Guarantor or MultiLender Contract Guarantor: Mandatory and Optional Contracts Contract Function Description Note: Early Funding contracts cannot be voided or canceled by the Seller when the contract status is Ready to Fund or Settlement Locked. For more information, refer to: Tips for Delivering Early Funding Contracts If you modify any of the following attributes, Loan Selling Advisor may de-allocate loans and you will be required to re-evaluate and revalidate the pool: Pricing Identifier Security Product Security Coupon and Pool number (MultiLender only) Security Coupon Minimum Required Servicing Spread 3. If you modify your contract, the related Pool and CUSIP numbers will change Follow the steps below to modify a Guarantor or MultiLender Contract: 1. From the Contract Details page s Contract Options box, click Modify Contract. 2. The Modify Contract Selection page will display. Click the Modify Section link to expand each section. Selling Mortgages for Securities Using Loan Selling Advisor Page 39 Chapter 4 December 2017

76 Take Out a Guarantor or MultiLender Contract Guarantor: Mandatory and Optional Contracts Contract Function Description 3. Modify the desired data in the desired section(s) and click Next at the bottom of each section. After completing the modifications, click Request Price. The remaining steps to accept the price will be the same as the original price acceptance process. Validate Pool If the Pool Valid Status is No, click Validate Pool to validate the pool against the contract terms. If the status does not change to Yes, click the Status message of No to view the reason why the pool cannot be validated. Selling Mortgages for Securities Using Loan Selling Advisor Page 40 Chapter 4 December 2017

77 Take Out a Guarantor or MultiLender Contract Guarantor: Mandatory and Optional Contracts Contract Function Add Loan(s) to Contract Description The Add Loan(s) to Contract option allows you to add loans to the contract that currently reside in Loan Selling Advisor s Loan Pipeline. (Sometimes referred to as Allocate Loans.) Follow these steps to add loans to a contract. 1. Click Add Loan(s) to Contract. 2. On the Contract: Add Loans page, enter loan criteria to search for eligible loans you want to allocate to the contract and click List Loans. The page will refresh and display your search results. 3. Select the loans you want to add to your contract by clicking the check box next to each loan. Selling Mortgages for Securities Using Loan Selling Advisor Page 41 Chapter 4 December 2017

78 Take Out a Guarantor or MultiLender Contract Guarantor: Mandatory and Optional Contracts Contract Function Description 4. If you want to view the total UPB of the selected loans, click View Selected UPB Amount. If the amount is insufficient to fulfill the contract terms, you can select more loans to allocate to the contract or you can proceed and allocate additional loans at a later date. Import Loans Loan Selling Advisor s import functionality allows you to import single or multiple loans with complete or partial loan data (provided the minimum required fields persist). If you import partial data, you can return later to complete the missing required data points. For Guarantor and MultIlender contracts, there are two import options available: MISMO XML Import (for creating a new loan) Import from LP (Loan Prospector ). Loan Selling Advisor is integrated with Loan Prospector (LP) and allows you to import certain LP data to create a new loan in Loan Selling Advisor. To import a file, click Browse and locate the file you want to upload. Complete the remaining questions on the import page and click Import Loans. Selling Mortgages for Securities Using Loan Selling Advisor Page 42 Chapter 4 December 2017

79 Take Out a Guarantor or MultiLender Contract Guarantor: Mandatory and Optional Contracts Contract Function Description Note: Data imported from LP constitutes partial loan information; therefore, you must provide additional loan data (such as Seller Loan Identifier) in order to save the loan. After saving the loan, other missing/required data may be provided using the import or manual entry methods. Void Contract You may void a contract until 8:00 PM (ET) the Business Day before the Settlement Date. If the contract is Early Funding, the seller cannot void it. For all other Guarantor and MultiLender contract types, the seller must contact Freddie Mac to void a contract in a Ready to Fund or Settlement Locked status. When you cancel a contract, Loan Selling Advisor will perform the following actions: Allocated loans will be de-allocated from both the contract and PC Pool. Pricing Identifier Terms balance will be adjusted to reflect the balance reserved by the cancelled contract. Contracts will be removed from the Contract Pipeline. Click Void Contract in the Contract Options box and confirm your request. The following message will appear: Selling Mortgages for Securities Using Loan Selling Advisor Page 43 Chapter 4 December 2017

80 Take Out a Guarantor or MultiLender Contract Guarantor: Mandatory and Optional Contracts Contract Function Description View/Assign Wire Instructions Click View/Assign Wire Instructions add, modify or remove wire instructions. Security wire instructions are set at a contract level and indicate where to send the security that is associated with all the mortgages in a Guarantor or MultiLender contract. Assigning wire instructions must be completed and assigned for each contract. The last day security wire instructions can be assigned is on Business Day before the Settlement Date. The exception to this process is Early Funding Guarantor. Refer to the Tips for Delivering Early Funding Contracts Following is an example of the View/Assign Wire Instructions page. View Change Fee History Select View Change Fee History in the Contract Options box to review the history of changes/modifications. The change history for your contract will open in a separate window. Selling Mortgages for Securities Using Loan Selling Advisor Page 44 Chapter 4 December 2017

81 Take Out a Guarantor or MultiLender Contract Guarantor: Mandatory and Optional Contracts Contract Function Description R & W Relief Summary Info. The R&W Relief Summary Info link allows you to view Collateral Representation & Warranty Relief Summary Information for all loans allocated to the contract. For more information about Collateral Representation & Warranty Relief, access the job aid by clicking here: Guarantor: Live BU/BD Trade Contract Function Modify Contract Name Description You may modify the contract name for a Live BUBD trade contract by clicking the Modify Contract Name link before the contract enters the settlement cycle. Modify Settlement Date You may modify the Settlement Date for a Live BUBD trade contract by clicking the Modify Settlement Date link. When you modify the date, it must fall within the same settlement month. Selling Mortgages for Securities Using Loan Selling Advisor Page 45 Chapter 4 December 2017

82 Take Out a Guarantor or MultiLender Contract Contract Function Description Guarantor: Live BU/BD Trade Pair Off Live Trade Click Pair Off the Live Trade and the following page appears: Selling Mortgages for Securities Using Loan Selling Advisor Page 46 Chapter 4 December 2017

83 Take Out a Guarantor or MultiLender Contract Contract Function Description Guarantor: Live BU/BD Trade View/Print Confirmation Click View/Print Confirmation to view, print or save a copy of the Contract Confirmation report. Following is an example: Selling Mortgages for Securities Using Loan Selling Advisor Page 47 Chapter 4 December 2017

84 Take Out a Guarantor or MultiLender Contract Guarantor: Live BU/BD Trade Contract Function Description View Change Fee History Click to view fee changes. Sellers may use this link to see if there has been a Pairoff for a Live Trade Contract. Contract Pipeline Overview Selling Mortgages for Securities Using Loan Selling Advisor Page 48 Chapter 4 December 2017

85 Take Out a Guarantor or MultiLender Contract The Contract Pipeline makes it easy for you to manage your contracts and quickly view and check the status of your contracts. The Contract Pipeline page provides summary information about accepted and fulfilled contracts. The default view organizes this data by the Investor Contract Identifier number, listing them in chronological order. You can change the way data is organized by clicking on the link in the column header. For example, if you want your data to be organized in chronological, alphabetic or date order, click the column header to reorganize or sort the data. To effectively manage your contracts, prior to the contract expiration date or the Final Delivery date, go to the Contract Pipeline to ensure the loan status reflects Ready to Fund. If the status displays New or Certification Released, you may need to take corrective actions in order to move forward to a Settlement Locked status. To View Contract Pipeline, select Contracts from the main menu, and then select View Contract Pipeline. The search options available for Guarantor and MultiLender contracts are accessible via the View Contract Pipeline page under the Guarantor and Live BUBD Trade tabs. Selling Mortgages for Securities Using Loan Selling Advisor Page 49 Chapter 4 December 2017

86 Take Out a Guarantor or MultiLender Contract The search criteria and the resulting data sets for each of the tabs are different. The following sections will provide an overview of each search tab, including definitions of the columns of data in the search results and contract change options available. Contract Pipeline for Guarantor and MultiLender To search for a contract, enter your search criteria and click List Contracts. You do not have to complete all the search fields; however, the more information that you provide, the more narrow your results will be. Following is an example of a Guarantor contract search demonstrating the results the search will produce. The Guarantor search results are quite extensive, with a total of 25 columns. Use the grey scroll bar at the bottom of the page to scroll left to right to view the results. The first two columns are fixed in place, so they do not scroll, allowing you to keep track of your location in the list of results. To access specific Contract Details, click the Investor Contract Identifier link in the first column of the Guarantor search results. Selling Mortgages for Securities Using Loan Selling Advisor Page 50 Chapter 4 December 2017

87 Take Out a Guarantor or MultiLender Contract Contract Pipeline for Live BU/BD Trade Following is an example of Live BUBD Trade search and the options available when selecting one of the contracts. Click one of the Live BUBD Trade Identifier links in the first column of the search results to access the Live BUBD Trade Summary. Selling Mortgages for Securities Using Loan Selling Advisor Page 51 Chapter 4 December 2017

88 Take Out a Guarantor or MultiLender Contract On the Contract Details page, you can make modifications to the contract via the links in the Contract Options box in the upper right corner. There are also two tabs at the bottom of the page (examples shown below) for Live BUBD Ratios and Live BUBD Pricing Details. Selling Mortgages for Securities Using Loan Selling Advisor Page 52 Chapter 4 December 2017

89 Take Out a Guarantor or MultiLender Contract Following is an example of the Live BUBD Pricing Details tab with the BUYUP and BUYDOWN buttons. Refer to the following table for descriptions of the information provided in the Guarantor search results columns. Selling Mortgages for Securities Using Loan Selling Advisor Page 53 Chapter 4 December 2017

90 Take Out a Guarantor or MultiLender Contract Guarantor Contract Search Results Column Name Investor Contract Identifier Prefix Pool Number Contract Name Delivery Type Contract Status Security Product Security Coupon Pool Type Settlement Date Final Delivery Date Security Amount Specified Allocated Loan UPB Description Identifies the Freddie Mac Loan Selling Advisor assigned contract number. Unique two-digit system derived number that is assigned by the Security Issuer. Six-digit PC Pool Number assigned to the contract. An optional free-form text field used to assign a name to contracts in order to track, identify and retrieve data in the system. Indicates whether the contract is Mandatory or Optional. Indicates the status of the contract as one of the following: 1. Accepted: Indicates the contract has been created and accepted. 2. Ready to Fund: Indicates the contract has met the criteria for settlement and is ready to fund. 3. Settlement Locked: The contract has entered th8e settlement cycle. 4. Fulfilled: Indicates the contract has been satis10fied and securities were issued. The mortgage product being pooled to form a security, the participation certificate (PC) or for MultiLender contracts, PC or Giant PC. Also known as the PC Coupon, it is the interest rate expressed as an annual percentage that is passed through monthly to a security investor. Indicates whether the contract is Single Issue or Multi-Lender. The date when Freddie Mac purchases the mortgages in exchange for PC s or Giant PC s. Also known as the Funding Date. The date set forth in Loan Selling Advisor by which all the requirements for the contract must be completed. The aggregate unpaid principal balance of mortgages that the Seller will sell to Freddie Mac under the contract. The characteristics that the Seller is willing to factor into the price of the contract. Each of the characteristics is applied 100% at the time of loan delivery. Valid Values include: LLB MLB Low Loan Balance Mid-Loan Balance MLB2 Mid-Loan Balance 2 HLB SHLB NY Investor FICO 10YR High-Loan Balance Super High-Loan Balance State Code = New York Property Usage Type = Investment Credit Score Maturity Period <= 120 Months Edits Cleared Indicates (Yes or No) if all loan edits have passed evaluation. Selling Mortgages for Securities Using Loan Selling Advisor Page 54 Chapter 4 December 2017

91 Take Out a Guarantor or MultiLender Contract Guarantor Contract Search Results Column Name Certification Status Type Pool Valid Approval Status Description There are four certification status types: 1. New: Indicates the Mortgage Note is not certified 2. Issue Outstanding: Indicates that data and/or documentation issues have been identified for the Mortgage Note 3. Certification Released: Indicates the Mortgage Note is certified. The Mortgage Note will remain in this status if the edits are not cleared or the wire has not been assigned. 4. Certified: Indicates the Seller has accepted the proposed data change and the Note is certified Indicates if the contract has passed pool validation criteria. The Approval Status indicates whether Freddie Mac has received the Form of Additional Supplement Prepayment Penalty Mortgages or for other negotiated pooling products as defined in your Master Agreement/Pricing Identifier Terms. One of three statuses may display: 1. Not Applicable: This contract does not require the Form of Additional Supplement Prepayment Penalty Mortgages. 2. Incomplete: This contract requires the Form of Additional Supplement Prepayment Penalty Mortgages and Freddie Mac has not received the form. 3. Approved: This contract requires the Form of Additional Supplement Prepayment Penalty Mortgages and Freddie Mac has received and approved the form prior to the settlement date of the contract. UPB Level Wire Ready The total Loan Acquisition unpaid principal balance of all the loans allocated against the contract. Indicates (Yes or No) whether the Wire is in Ready status 996E Complete Indicates the status of the Form 996E of: Yes (has been built), N/A (not applicable) or 996 Not Built. Awaiting Warehouse Lending Assessment Loans Priced Transaction Type Early Funding Indicator Early Funding Target Date Indicates the status of the warehouse lender s assessment and completion of the Form 996E. Freddie Mac must receive the fully executed Form 996E before funding can occur. Indicates whether the loans were priced against the contract terms. Indicates whether the contract taken out is for Flow or a Bulk transaction. Indicates whether Seller chooses to receive funding up to 45 days before Settlement date. If eligible, the Seller can select this to choose to receive funding up to 45 days before the Settlement Date. The date a Seller eligible for Early Funding expects funds to be wired to a Counterparty. Refer to the following table for descriptions of the information provided in the Live BU/BD search results columns. Selling Mortgages for Securities Using Loan Selling Advisor Page 55 Chapter 4 December 2017

92 Take Out a Guarantor or MultiLender Contract Live BU/BD Contract Search Results Column Name Live BUBD Trade Identifier Pool Type Live Trade Status Security Product Specified Pool Type Descriptions A four-digit number the system assigns a Live BUBD Trade once accepted. The Identifier can be found at the top of the Live BUBD Trade Contract Details page. Indicates whether the contract is Single Issue or MultiLender. The contract status of a Live BU/BD Trade: Accepted Fulfilled Live BUBD Locked The mortgage product being pooled to form a security, the participation certificate (PC) or for MultiLender contracts, PC or Giant PC. The characteristics that the Seller is willing to factor into the price of the contract. Each of the characteristics is applied 100% at the time of loan delivery. Valid values include: LLB Low Loan Balance MLB Mid-Loan Balance MLB2 Mid-Loan Balance 2 HLB SHLB NY Investor FICO 10YR High-Loan Balance Super High-Loan Balance State Code = New York Property Usage Type = Investment Credit Score Maturity Period <= 120 Months Settlement Date Live BUBD Trade Deadline Total Buyup UPB Total Buydown UPB The date when Freddie Mac purchases the mortgages in exchange for PC s or Giant PC s. Also known as the Funding Date. The last date a Live BU/BD Trade can be executed and accepted in the system before a specified Live BU/BD Trade Settlement Date. This Live trade BUBD deadline is the date that is being use to match all the Guarantor and Multi Lender contracts using the following matching criteria: Settlement Date, Pricing Identifier, Security Product, Base Offering Product Adjuster. The total loan acquisition UPB amount of buyup for a Live BU/BD Trade Priceable Item. The total loan acquisition UPB amount of buydown for a Live BU/BD Trade Priceable Item. Selling Mortgages for Securities Using Loan Selling Advisor Page 56 Chapter 4 December 2017

93 Manage Loans 5 Overview of Managing Loans Loans are managed in Loan Selling Advisor for contract fulfillment purposes. You can manage loans directly from the Loan Pipeline page or from the Contract Details page. When you manage loans from the Contract Details page, you are managing loans for a specific contract. When you manage loans from the Loan Pipeline, you can manage any loan, regardless of whether or not the loan is allocated to a contract. This chapter will provide information and procedures on the Loan Pipeline, Modifying and Evaluating loans, Compare with Loan Product Advisor and Calculating Loan Acquisition Scheduled UPB. Loan Pipeline Overview Chapter Loan Pipeline is a function you will use to search for loans and manage loans saved in Loan Selling Advisor. The Loan Pipeline allows you to filter information based on various criteria to narrow your search and list desired loans. It is recommended that this is the first function to go to if you want to perform any action to a loan. Access the Loan Pipeline from the main menu under Loans. Loan Pipeline Page It is easiest to understand the Loan Pipeline page by dividing the page into four areas. Use the following table to learn about each area. Loan Pipeline Page Loan Pipeline Areas Basic Search Advanced Search Action buttons Description This is the default tab displayed upon entering the Loan Pipeline function. This search is a fast way to obtain a specific loan or range of loans. This search tab allows you to enter additional criteria to search for loans. Use the advanced search tab to display additional columns such as the status of Form 996E, Requested Settlement Date and Credit Fee in Price. The buttons will provide access to the following functionality: View/Modify Loan Evaluate Delete Compare with LP Selling Mortgages for Securities Using Loan Selling Advisor

94 Manage Loans Loan Pipeline Page Loan Pipeline Areas Description Calculate Loan Acquisition Scheduled UPB Amount The action buttons that are available in your particular view are dependent upon your user role and the status of the loan(s) with which you are working. Loan Pipeline Results This area lists the search results. The maximum number of loans that can be listed is The labeled data columns shown depend on whether you performed a Basic Search or an Advanced Search. Use the advanced search tab to display pipeline results that include Credit Fee in Price information. Following are examples of the Loan Pipeline search pages: Example - Basic Search Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 5 March 2018

95 Manage Loans Example - Advanced Search Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 5 March 2018

96 Manage Loans Loan Pipeline Search Results The columns that appear on the loan pipeline results will depend on whether you perform a Basic Search or an Advanced Search. The following table provides a brief description of the information provided in each column and under which search the column will appear Basic or Advanced. Column Header Search Tab Description/Definition Basic Advanced Seller Loan Identifier This is the unique identifying number assigned by an institution to a loan application. Investor Contract This is the contract number of the contract. Identifier Last Name Last name of borrower. Prefix This is the two-digit pool prefix. Pool # This is the PC Pool Number assigned to the contract. Contract Expires The last date of a period of time a Seller has committed to deliver mortgages to fulfill a contract. UPB Indicates the Loan Acquisition Unpaid Principal Balance of the loan. Interest Rate The original interest rate as indicated on the Note. Also known as Note Rate Percent. Loan Reference Indicates the product type assigned by Loan Selling Product Label Advisor based on the data delivered. For example, 30-year fixed conventional. Loan Status* Indicates the state a loan is in at a specific point during the loan life cycle. A loan has one of the following states: New, Certification Released, Ready to Fund, Settlement Locked and Funded. Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 5 March 2018

97 Manage Loans Column Header Search Tab Description/Definition Basic Advanced Certification Status Indicates if the loans in the contract have completed certification. There are three status: New, Issue Outstanding and Certified. Certification The date the Certification was completed. Completed Date Edits Cleared Indicates by Yes or No if a loan passes Relief and Warrant eligibility. Edits Cleared Date The date the edits were Cleared. Wire Assigned Indicates by Yes or No if wire assignment instructions have been assigned to the contract. Warehouse Lender The unique identifier assigned to the Warehouse Lender. Identifier 996E Build Status Indicates by Yes, No or N/A, if Form 996E is built. 996E Created Date The date the form was created in the system. 996E Completed Indicates date and time the form 996E was completed by Date Freddie Mac internal user. Requested Settlement Date Indicates the date Freddie Mac wires cash or a security to the seller or the Seller s Warehouse Lender as payment for the purchase of mortgages sold. The mortgage must be in the possession of Freddie Mac or the Custodian and certification must be completed by the final delivery date for a Guarantor contract. For a Cash contract, certification must be completed before the requested settlement date or the expiration date of the contract. R&W Relief View the Collateral Rep & Warranty Relief status for the loan(s). Credit Fees Yield These columns display the total Credit Fees in Yield. If a (bps) Credit Fee applies to the loan, the total Credit Fee amount Credit Fees Price (bps) Credit Fees Dollar ($) will display as a hyperlink. Click the link to view the Fee Breakdown window which contains: Seller Loan Identifier Freddie Mac Loan Number Investor Contract Identifier (if allocated to a contract), Unpaid Principal Balance (UPB) Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 5 March 2018

98 Manage Loans Column Header Search Tab Description/Definition Basic Advanced LP Price Level (for loans that have gone through Loan Product Advisor) Calculation Date For loans allocated to a Cash contract, the Base Price and Net Price. For loans allocated to a Guarantor Fixed Rate, WAC ARM Guarantor and MultiLender contract: Credit Fee in Yield (Gfee), Buy Up Buy Down proceeds and the Gfee Add-on (Temporary Payroll Tax Cut Continuation Act of 2011) information. Total Delivery Fees The total amount of Credit Fees in bps or price. Click the dollar value hyperlink to view a breakdown of the totals. Freddie Mac Loan # This is the unique identifying number assigned by Freddie Mac to a loan after the loan has been allocated to a contract or after Form 1034E is built. * 1. Prior to the contract expiration date or the Final Delivery date, go to the Loan Pipeline to ensure the loan status reflects Ready to Fund. If the status displays New or Certification Released, you need to take corrective actions in order to move forward to a Settlement Locked status. 2. For Guarantor Single Issue and MultiLender, the contract must be in Ready to Fund status on the Final Due Date of the contract in order for the contract to move to Settlement Locked status. Loan Status The chart below lists and defines each loan status. Loan Status Status New Certification Released Ready to Fund Settlement Locked Funded Definition A loan has been created in Loan Selling Advisor, but has not been certified. A loan has been created in the system and has been successfully certified, but must be re-evaluated. Changes cannot be made to certified data fields. In addition, if using a warehouse lender, Freddie Mac must receive the executed Form 996E, if applicable, before the loan can be funded. A loan has been allocated to a contract, successfully certified, and purchase edits have been cleared. You can make modifications to fields that are not included in the certification process and you can remove loans from a contract when loans are in this status. A loan has been allocated to a contract, successfully certified, purchase edits have been cleared, and funding will occur based on the requested settlement date by the seller. Once in this status, loan modifications cannot be made and the loan cannot be removed from the contract, however the contract can be voided. Indicates that the loan has funded. Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 5 March 2018

99 Manage Loans View Loan Pipeline Follow the steps below to view your loan pipeline. 1. From the main menu, select Loans and then select View Loan PipeLine. 2. Enter your search criteria in either the Basic Search or Advanced Search tab. You must select at least one field to start your search. 3. Click List Loans. The Loan Pipeline page re-displays with the loans that meet your criteria. Refer to the sections below for step-by-step procedures on how to use the Action Buttons in the Loan Pipeline page. View/Modify Loans You can make changes to loans after they are saved in Loan Selling Advisor by using the View/Modify function. Follow the steps below to modify loans, with the exception of Best Efforts. 1. Once you have completed your Basic or Advanced search, the Loan Pipeline page re-displays with a list of loans that meet your criteria. 2. Select the loans you want to modify by checking the box next to the loan. 3. Click View/Modify. The Modify Loan page displays with the loans you selected. 4. Click the + in each section that you want to modify. Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 5 March 2018

100 Manage Loans Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 5 March 2018

101 Manage Loans 3. If you selected more than one loan to modify, you can move back and forth between loans by clicking Previous Loan (No Save) or Next Loan (No Save). 4. When you have completed all of your modifications, click Finish at the top of the page.the Summary of Modified Loans page displays a summary of the loans you just modified. 5. If you want to evaluate all the loans that you just modified, check the Select All box and then click Evaluate Loans. Otherwise, click Back to Pipeline Search Results to return to your Pipeline search results page. You cannot modify Best Efforts loans from the Loan Pipeline. You must access the Contract Details page to modify a Best Efforts loan. Refer to Modify a Best Efforts Contract in Loan Selling Advisor s online help for more information on Best Efforts contracts. To modify a Best Efforts loan where the 1034E has not been built, you must modify it via the Contract Details page, by clicking the Modify Best Efforts Contract link in the Options box. You can see the results of Loan Product Advisor assessments in the Loan Product Advisor Details section of the Modify Loan page. The LP indicator indicates if the loan is determined to be LP, Non LP, or LP Exclude. The CS/LTV (A-minus) indicator determines if the loan is subject to CS/LTV (A-minus) Credit Fee in Price according to Exhibit 19 in the Freddie Mac Single-Family Seller/Servicer Guide. Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 5 March 2018

102 Manage Loans Evaluate Loans Loans must be evaluated and all critical edits must be cleared before funding can occur. Loan Selling Advisor can accommodate the evaluation of one or many loans. Loans are evaluated for accuracy, completeness and alignment with Freddie Mac requirements. You can clear loan edits any time after the loan is saved in Loan Selling Advisor. Critical errors prevent your loan from moving to a Ready to Fund status and must be corrected before the contract and / or loan can fund/settle. Be sure to review the error messages carefully as they provide guidance on how to resolve the errors. Warning messages do not have to be corrected and do not prevent funding/settlement from occurring. However, Freddie Mac recommends that you review them to determine whether data is accurate and / or complete and take appropriate steps to clear them if necessary. Follow the steps below to evaluate loans, starting from the Loan Pipeline page: 1. Enter your search criteria in the Basic or Advanced Search tab. You must select at least one field. 2. Click List Loans. The Loan Pipeline screen re-displays with loans that meet your search criteria. 3. Select the loan(s) you want to evaluate by checking the Select box next to each loan. You can select all loans on the page by clicking the Select Page checkbox. 4. Click Evaluate. Loan Selling Advisor will evaluate your loans. The Evaluate Loan page will display. If you picked more than one loan, the first loan that has evaluation messages displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 5 March 2018

103 Manage Loans 5. Review the messages and make corrections, if applicable, to the loan data: Critical Errors. Critical errors prevent your loan from moving to a Ready to Fund status and must be corrected before the contract and / or loan can fund/settle. Be sure to review the error messages carefully as they provide guidance on how to resolve the errors. Warning Messages. Warning Messages do not have to be corrected and do not prevent funding/settlement from occurring. However, Freddie Mac recommends that you review them to Selling Mortgages for Securities Using Loan Selling Advisor Page 11 Chapter 5 March 2018

104 Manage Loans determine whether data is accurate and / or complete and take appropriate steps to clear them if necessary. 6. Click Save and Evaluate Loan. Once you have successfully cleared all edits on this loan, a confirmation message displays. 7. If you have additional loans that need corrections, but you are not making any modifications to the current loan, click Next Loan (No Save). 8. Click Finished to indicate that you are finished evaluating your loans. The Summary of Evaluated Loans page displays. 9. Go to the column titled Edits Clear? to ensure the status reflects Y for yes. If the status still reflects N for no, you must return to the loan and clear the remaining critical edits by repeating steps 4 7. View Evaluation Issues View Evaluation Issues allows you to view evaluation edits for single or multiple loans in a printer friendly view or gives you the option to export files in.csv format. This function enables you to correct loan data in your Loan Origination System (LOS) and re-import, or manually enter, the corrected data. To view evaluation issues, follow these steps: 1. From the main menu, select Loans and then select View Evaluation Issues. 2. The View Evaluation Issues page displays. Enter your search criteria and click View Evaluation Issues. Selling Mortgages for Securities Using Loan Selling Advisor Page 12 Chapter 5 March 2018

105 Manage Loans 3. The View Export Results page displays. While the export is in progress, the Status will show as Pending. Click Refresh File Status to update the status until the status shows as Completed. 4. When the Status shows as Completed, click the File Name to open the data file in.csv format. Selling Mortgages for Securities Using Loan Selling Advisor Page 13 Chapter 5 March 2018

106 Manage Loans The View Evaluation Issues page displays. From this page, you can either click Export Evaluation Issues File to export the data in.csv format, or Print Preview to view the information in.pdf format in your browser. Selling Mortgages for Securities Using Loan Selling Advisor Page 14 Chapter 5 March 2018

107 Manage Loans Selling Mortgages for Securities Using Loan Selling Advisor Page 15 Chapter 5 March 2018

108 Manage Loans Example of export data in.csv format: Example of Print Preview in.pdf format: Delete Loans You have the ability option to delete loans from the loan pipeline. Keep in mind, if the loan is allocated to a contract and any of the following forms are built: Form 1034E, Note Delivery Cover Sheet or Form 996E, you must first remove the loan(s) from the form and then remove it from the contract before it can be deleted from the loan pipeline. Follow the steps below to delete loans, starting from the Loan Pipeline page: 1. Enter your search criteria in either the Basic Search tab or the Advanced Search tab. You must select at least one field in your search request. 2. Click List Loans. The Loans Pipeline page re-displays with loans that meet your search criteria. 3. Select the loan(s) you want to delete by clicking the box next to each loan and then click Delete. Selling Mortgages for Securities Using Loan Selling Advisor Page 16 Chapter 5 March 2018

109 Manage Loans 4. A confirmation message displays asking if you are sure you want to delete the loans. Click OK to delete the selected loan(s). The Summary of Deleted Loans page displays with a confirmation message. Loan Product Advisor Compare The Compare with Loan Product Advisor function lets you compare data in Loan Product Advisor against data in Loan Selling Advisor. When the data does not match, you have the option to overwrite data in Loan Selling Advisor with data from Loan Product Advisor. To perform the comparison, you must first search for the loan by using the following search criteria: Automated Underwriting Case Identifier (LP Key Number) Primary Borrower Taxpayer Identifier Value Secondary Borrower Taxpayer Identifier Value (required if there are two borrowers) When a matching transaction is found and a comparison is performed and identifies values that do not match. You may then select which values you want to overwrite in Loan Selling Advisor. Following the steps below to use the Compare with Loan Product Advisor function: 1. In the main menu click Loans and then click View Loan Pipeline. 2. In the Loan Pipeline page, enter search criteria in the Basic Search or Advanced Search tab. You must enter at least one field to search. 3. Click List Loans. The Loan Pipeline page re-displays with a list of loans that meet your search criteria. 4. Select the loan(s) you want to compare by checking the Select box next to each loan. You can select all loans on the page by clicking the Select Page checkbox. 5. Click View/Modify. The Modify Loan page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 17 Chapter 5 March 2018

110 Manage Loans 6. Click Compare With Loan Product Advisor. The Search for Loan in Loan Product Advisor page displays. 7. Fill in the fields to identify the Loan Product Advisor loan data for comparing to the Loan Selling Advisor loan data. 8. Click Search for Loan in Loan Product Advisor to Compare. The Search for Loan in Loan Product Advisor page re-displays with results. 9. Review the results and click the value(s) you want to overwite in Loan Selling Advisor. Selling Mortgages for Securities Using Loan Selling Advisor Page 18 Chapter 5 March 2018

111 Manage Loans Selling Mortgages for Securities Using Loan Selling Advisor Page 19 Chapter 5 March 2018

112 Manage Loans Only values that do not match exactly will appear under the search area of the page. Values that match, will not appear. If you do not want to update any changes to Loan Selling Advisor, click Return to Modify Loan (no Save). 10. Click Update Form. A warning message displays. 11. Click OK and the Modify Loan page displays with any pre-existing data modified. 12. Click Finish when done. Selling Mortgages for Securities Using Loan Selling Advisor Page 20 Chapter 5 March 2018

113 Manage Loans Calculate Loan Acquisition Scheduled UPB Amount Overview The Freddie Mac Single-Family Seller/Servicer Guide Sections , , , and require that you calculate and deliver the Loan Acquisition Scheduled UPB (unpaid principal balance) Amount for the month of funding. The Loan Selling Advisor makes it easy for you to comply with these requirements by calculating the scheduled UPB for you. You can access the Calculate Loan Acquisition Scheduled UPB Amount functionality from the Loan Pipeline. We encourage you to confirm the calculated Loan Acquisition Scheduled UPB Amount against the loan s amortization schedule. The Calculate Loan Acquisition Scheduled UPB function is available for Fixed-rate mortgages only and can be accessed from the Loan Pipeline. If your user role permits you to modify loans, you will have access to this function. When you use the Calculate Loan Acquisition Scheduled UPB Amount function, you will have the option to update the loan s existing Loan Acquisition Scheduled UPB Amount and Last Paid Installment Due Date data fields with the newly calculated amount and date. Keep in mind the Current UPB and Settlement Date are used to calculate the Loan Acquisition Scheduled UPB Amount. Therefore, it is important for you to provide data in Loan Selling Advisor that is complete and accurate. If a loan contains inaccurate values such as original P&I, it will result in an incorrect calculation. Mortgages sold through the Servicing Released Sales Process, or under the Guarantor and MultiLender programs, will receive a critical edit if they do not meet the scheduled UPB requirements. You must clear this edit by using the Calculate Loan Acquisition Scheduled UPB Amount in Loan Selling Advisor or by manually updating the current information in the Loan Acquisition Scheduled UPB Amount and the Last Paid Installment Due Date fields in order for your loan to move into a Ready to Fund status. For all other contract types, you will receive a warning message. When delivering Best Efforts loans, you can use this function to calculate the scheduled UPB after Form 1034E is built. Follow the steps below to calculate the scheduled UPB and Interest Paid to Date: 1. From the main menu click Loans and then click View Loan Pipeline. 2. In the Loan Pipeline page, enter search criteria in the Basic Search or Advanced Search tab. You must enter at least one field to search. 3. Click List Loans. The Loan Pipeline page re-displays with a list of loans that meet your search criteria. 4. Select the loan(s) you want to calculate by clicking the checkbox next to the Seller Loan Identifier. You can select all loans on the page by clicking the Select Page checkbox. 5. Click Calculate Loan Acquisition Scheduled UPB Amount. The Loan Acquisition Scheduled UPB Results page displays. You can select up to 700 eligible loans to Calculate Loan Acquisition Scheduled UPB Amount. If more than 700 loans are selected, you will receive a message asking you to limit your selection. Selling Mortgages for Securities Using Loan Selling Advisor Page 21 Chapter 5 March 2018

114 Manage Loans 6. To update the Loan Acquisition Scheduled UPB Amount and Last Paid Installment Due Date, select the loan(s) to be updated and click Update Loans. The Loan Acquisition Scheduled UPB Update Summary page displays the loans that were successfully updated. 7. To return to the Loan Pipeline, click Back to Pipeline Search Results. Selling Mortgages for Securities Using Loan Selling Advisor Page 22 Chapter 5 March 2018

115 Create Loans 6 Overview You can create and add new loans to Loan Selling Advisor SM by entering loan data manually or by importing an XML file. When you create a loan in Loan Selling Advisor, it is automatically saved in the Loan Pipeline. You can add loans to your pipeline at any point during the life cycle of a loan. Once your loans are saved in Loan Selling Advisor, from the Loan Pipeline, you can search, modify, allocate/add, evaluate, delete, compare with Loan Product Advisor and you can calculate the loan scheduled UPB amount. You can also remove loans from a contract. When you remove a loan from a contract, it remains in Loan Selling Advisor until you delete it from your Loan Pipeline. The sections of this chapter provide information to assist you in data organization, the main menu, how to find data, minimum data points, loan labeling and procedures, and how to create loans in Loan Selling Advisor. Navigation and Functions Chapter Loan data is organized in sections on the Create New Loan page. The following is the navigation bar for the Create New Loan page: The Modify Loan page displays after the loan is saved. It includes one additional section of Uniform Collateral Data Portal (UCDP). The navigation bar is always visible at the top of the page. To navigate between sections, click on the desired section title. It s important to become familiar with the titles, as loan edits and feedback may refer to a certain section. Loan Page Features Following is a table with Loan page features: If You Click Save as Draft (located on top and bottom of Create New Loan page). Click Finish (located on top and bottom of Create New Loan page). Then Loan Selling Advisor will save the data points you have entered (provided that all minimum required data points have been completed) and will return you to the Create New Loan or Modify Loan page so you can continue entering data. Loan Selling Advisor saves the loan and advances you to the New Loan Summary page. Click Expand All or Collapse All (located in the upper right corner of the page). All sections will automatically expand (to show sections and data below) or collapse (to hide sections and data below). Selling Mortgages for Securities Using Loan Selling Advisor

116 Create Loans If You Click + or sign (located by each section heading). Then The selected section will expand or collapse. Click the light blue background on the subsection header rows. The sub-section will automatically expand (to show all data points in the sub-section) or collapse (to hide all data points in the sub-section). Click Back to Top (located at the end of each section). Loan Selling Advisor returns you to the top of the Create New Loan page. Complete the minimum required data points marked with an asterisk (*). You are able to save the loan. All data points followed by a red asterisk must be completed in order to save the file in Loan Selling Advisor. For more details, see Minimum Data Points Required to Save a Loan. Click on the box in front of the data point you want to remove and click Remove Selected. Only the row containing the check will be deleted. Click Add (data point) button. An additional row displays to allow you to input more data. If You Click on a data point with radio buttons as the selection options Then Either True or False must then be selected. The radio buttons cannot be returned to blank. Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 6 March 2018

117 Create Loans If You Then Section Descriptions The following table provides high level descriptions of the sections on the Create New Loan and Modify Loan pages, including the additional section for UCDP. Section Descriptions Section Title Property Borrower Description This section contains data about the subject property. This section allows for up to five borrowers to be entered on the loan. The information for each borrower is separated into numbered tabs, for example, Borrower 1, Borrower 2, up to Borrower 5. To add a borrower, click the Add Borrower tab. Data is always required in this section. Party This section pertains to data associated with the Loan Originator, Mortgage Funder, Appraiser and Warehouse Lender, and identifies the role that the designated parties play in the transaction. A party may be either a person (individual) or a legal entity (non-individual). Data is always required in this section. Closing You must deliver data in this section and it s four sub-sections for all loan types. The data in this section is sometimes referred to as original loan information and represents loan data at the completion of the closing process, sometimes referred to as the original loan state. Data is always required in this section. Current Data in this section is required to onboard the loan for servicing. It includes data about the settlement transaction with Freddie Mac, and other investor-specific information. If you import loans, data delivered in this section is valid as of the date it was retrieved Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 6 March 2018

118 Create Loans Section Descriptions Section Title Description from your system. If you manually enter loan delivery data in Loan Selling Advisor, the data delivered in this section must be current as of the Freddie Mac Funding Date. Data is always required in this section. Modification Data in this section is for Seller-Owned Modifications and Construction Conversion or Renovation Mortgages with Modification Documentation. The data in this section is accurate as of the time that the modified note terms became effective. Data is required in this section only if you are delivering a modified loan. If the loan you are delivering is a Seller-Owned Modified Mortgage or a Construction Conversion or Renovation Mortgage with Modification Documentation, you must enter the data about the loan in the Modification section. Much of the data in this section may not have changed since origination. Even if it has not changed, it is to be entered in this section, because you are selling a modified loan. This section is used to deliver required and conditionally required information about the modified loan that became effective on the Loan Modification Effective date. In addition to the data about the modified loan that you will enter in this section, you must also enter a subset of data about the original loan terms in the Closing section. Conversion This section is used to submit data for FRE-Owned or Seller-Owned Converted Mortgages. The data on this section is accurate as of the time that the converted Note terms became effective. Data is required in this section only if you are delivering a converted loan. The Conversion section is used to deliver required and conditionally required information about the converted loan once the conversion option has been exercised (for example, when a loan has converted from an ARM to a fixed-rate mortgage). Total Loans UCDP Specific to Modify Loans page only This section is used to enter the Combined LTV Ratio Percent and the Home Equity Combined LTV Ratio Percent. Although you are required to calculate and deliver these values, which will be maintained by Loan Selling Advisor, Freddie Mac will recalculate the values and use them for all loan eligibility and pricing decisions. The appraisal data in this section, Uniform Collateral Data Portal (UCDP), has been imported from UCDP based on the Appraisal Identifier provided. It represents appraisal data in the UCDP at the time of the most recent evaluation of the Loan Selling Advisor loan data. Find Feature - Use your browser s find feature to search for information on the page you are viewing. For more information, refer to the Find Feature section in Chapter 1 of this user guide. Minimum Data Points Required to Save a Loan Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 6 March 2018

119 Create Loans Whether you create a loan in its entirety, enter partial loan information, or enter the minimum required data points, certain data points must be present to save the loan. The minimum data points required to save a loan are marked with a red asterisk*. If you choose to save a loan with only the minimum required data points, you may return at a later point in time to complete the remaining data points. Keep in mind, however, that you must return and complete entry of all remaining required data points before proceeding with contract fulfillment. The following table lists the minimum required data points and their location on the Create New Loan page. Minimum Data Points Required to Save the Loan Section Name Sub-Section(s) Name Required Data Point (Marked with a red asterisk*) Top portion of page n/a Seller Loan Identifier Property Subject Property Address State Code Postal Code Property Details Financed Unit Count Borrower Borrower Details Borrower Classification Type First Name and Last Name or Non-Individual Borrower Name Closing Product Details Loan Amortization Type Note Information Note Amount Label a Loan with the Loan Reference Product Label Before you can allocate a loan to a contract, it must contain the data required to identify the applicable loan product. In Loan Selling Advisor, this is known as the Loan Reference Product Label. When the Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 6 March 2018

120 Create Loans required data is complete, Loan Selling Advisor automatically labels the loan and will display the Loan Reference Product Label at the top of the Modify Loan page If you attempt to allocate a loan to a contract before the Loan Reference Product Labeled, Loan Selling Advisor will prevent you from allocating the loan against the contract. Use the following table to assist you in accurately completing the Loan Reference Product Label information. For each type of loan (fixed-rate and ARM), an X indicates the data point required to properly label a loan in Loan Selling Advisor. Except for the Loan Amortization Type, these data points are in addition to the minimum data points denoted with a red asterisk *. Data Points Required to Label Loans Data Points Fixed Rate ARM Loan Amortization Type X X Interest Calculation Period Type X Loan Maturity Date X X Scheduled 1st Payment Date X X Mortgage Type Balloon Indicator X X Interest Only Indicator X X Per Change Rate Adjustment Frequency Months Count (Subsequent section only) Initial Fixed Period Effective Months Count X X Create a Loan Manually Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 6 March 2018

121 Create Loans The following procedures will assist you in manually creating a loan (sometimes referred to a direct entry) in Loan Selling Advisor. The illustrations display the sections of the Create New Loan page. Enter all required and conditionally required data in each section. You must complete the required fields marked with a red asterisk * before saving. Once the required fields are entered, you may also select Save as Draft and return at a later point in time to complete the remaining data points. For additional details on each section of the Create New Loan page, please refer back to Section Descriptions in this chapter. Follow the steps below to Create New Loan: 1. From the main menu select Loans, and then select Create New Loan. The Create New Loan page displays. 2. Enter data in each applicable section. In the examples below, each section is collapsed. Click the + to expand the section and access the data fields to enter data. Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 6 March 2018

122 Create Loans Section(s): Property and Borrower: Section(s): Party and Closing: Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 6 March 2018

123 Create Loans Section(s): Current: Section(s): Modifcation, Conversion and Total Loans: Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 6 March 2018

124 Create Loans Section(s): UCDP (Will only display on the Modify Loan page): 3. Once all data fields have been entered, click Finish. 4. The New Loan Summary page will display with a confirmation message, The loan has been saved successfully. This page will contain the Seller Loan Identifier, Borrower name and Loan Reference Product Label, if the appropriate fields were populated. You will then have the option to evaluate the loan you just created or to create another loan. Refer to Freddie Mac Single-Family Seller/Servicer Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 6 March 2018

125 Create Loans Guide chapter 6302, Mortgage Delivery Instructions, for more information on data delivery instructions. Import Loans Overview Loan Selling Advisor s import functionality allows you to import single or multiple loans with complete or partial loan data (provided the minimum required fields persist). If you import partial data, you can return later to complete the missing required data points. There are two import options to create a loan in Loan Selling Advisor: Option 1: Import MISMO XML (for importing the Uniform Loan Delivery Dataset (ULDD) to create a new loan) Option 2: Import from Loan Product Advisor. Loan Selling Advisor is integrated with Loan Product Advisor and allows you to import certain Loan Product Advisor data to create a new loan. Data imported from Loan Product Advisor constitutes partial loan information. You will need to complete all required fields to save and/or deliver the loan. After saving the loan, any additional missing/required data may be provided using the MISMO XML Import or manual entry methods. Modify Best Efforts Import: Use to modify data on pre-existing loans or modify contract terms for contracts with an accepted status. May also be used to modify and extend or relock the contract when the contract status is unfulfilled. For more details, refer to Chapter 5 of the Selling Mortgages to Freddie Mac for Cash User Guide. Import MISMO XML The Import MISMO XML function lets you import the Uniform Loan Delivery Dataset. When you select this function, you will arrive in the Import Loan page. Here you will provide information about the parameters of your import file, such as the location of the file, or whether you are assigning a pool number at the time of import, or if you are overwriting pre-existing data. Follow the steps below to complete information in the Import Loan page. 1. From the main menu click Loans, and then select Import MISMO XML. The Import Loan page displays. 2. Select Browse to locate the file you want to import. 3. Select Yes to Overwrite existing loans on Import if you want to overwrite pre-existing data with a new file. Select No if there is no pre-existing loan data in Loan Selling Advisor. If you choose not to overwrite existing loans at import and Loan Selling Advisor detects duplicates, the duplicate loans will have the following message displayed on the Import Errors Detail page 4. If you are importing loans to be allocated to a Guarantor or MultiLender contract, select one of the options under Assign a Investor Contract Identifier or Pool Number to this file: Select No if you do not want to assign a contract or PC Pool number to the file. Select Yes to assign the contract identifier alphanumeric number that displays in the grayedout box to the loans during import. If a contract number pre-exists in the import file Loan Selling Advisor will not overwrite it. Select Yes to assign the pool # that displays in the grayed-out box to the loans during import. Selling Mortgages for Securities Using Loan Selling Advisor Page 11 Chapter 6 March 2018

126 Create Loans 5. If you want to use the Seller Loan Identifier as the only loan identifier, check the appropriate box. This checkbox is used when you wish to re-import loans using the Seller Loan Identifier for the purpose of overwriting existing Borrower loan data. 6. If you want to evaluate the loans at import, check the Evaluate the loans in this file at import. This is a user preference as loans can be evaluated at a later time. 7. Click the Import Loans button to import the loan file. The Import Loan: Results page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 12 Chapter 6 March 2018

127 Create Loans Importing More Than 500 Loans at One Time If you are importing more than 500 loans at one time, the Run Evaluation Prompt page will display informing you that the system will take time to complete the evaluation. Loan Selling Advisor will create a default Evaluation Record Name comprising the user ID and date/time stamp, which you can change if desired. You can choose to Run Evaluation in Background and access other functionality during the evaluation period, or return to the Loan Pipeline: Search Results page to work with another loan while awaiting the evaluation results. While working in other parts of Loan Selling Advisor, you can always return to the View Evaluation Results page via the main menu by selecting Loans and then selecting View Evaluation Results. Upon completion, you will be taken to the View Evaluation Results page displays, which lists each completed evaluation record with Record Name, Request Date/Time, Total Number of Loans and Status. Once the Status is shown as Completed, click the Evaluation Record Name. The View Evaluation Issues page for that record will display. Selling Mortgages for Securities Using Loan Selling Advisor Page 13 Chapter 6 March 2018

128 Create Loans View Import Results Once the import and evaluations (if necessary) are complete, the Import Loan: Results page will display, showing a summary of the results of your import, including loan status as either In-Progress or Completed. The results are organized in chronological order by import file name and will remain available in Loan Selling Advisor for a seven-day period. Selling Mortgages for Securities Using Loan Selling Advisor Page 14 Chapter 6 March 2018

129 Create Loans The following table provides descriptions of the information in the Import Loans Results page. Import Results Page - Data Field Descriptions Field Name Definition Special Notes File Name User ID Date/Time Total Loans Total Current UPB Processed Import Errors Allocation Errors Evaluation Errors R&W Relief Not Eligible / Co Indicates the name of the import file. Indicates the user ID of the person who imported the file. Indicates the date and time the file was imported. Indicates the total number of loans in the import file. Indicates the total current unpaid principal balance of the loans in the file being imported. In contrast, on each error details page, this indicates the total current UPB of loans with that particular error type. Indicates the total number of loans processed in the import file. Indicates the number of loans that could not be imported due to loan data syntax errors. This count includes any duplicate loan IDs that already exist in Loan Selling Advisor and where the option to overwrite at Import was not selected. Indicates the number of loans that could not be allocated to the contract you specified at import. Indicates the number of loans in the import file that did not clear purchase edits. See Evaluation Errors in the Import Errors section for more details. Indicates the number of loans ineligible for collateral representation & warranty relief. Clicking on the column header will sort the loan results by user ID Clicking on the column header will sort the loan results by date/time This number is based on the total number of loans in the file you chose to import. The following disclaimer note displays: This Total Current UPB of all loans imported into Loan Selling Advisor may change before settlement if UPB errors, omissions and discrepancies are discovered and corrected. This indicator will not be updated to reflect the corrected Total Current UPB. This amount is different from the Contract Details page, which shows the Total UPB of a contract and will be adjusted to reflect any updates in Loan Selling Advisor. When this equals total loans, processing is complete. These errors must be corrected before the loans can be successfully imported. Selected by the user to assign loans to a contract or pool number. Selected by the user to evaluate loans at import. Click the Numeric value to view the status and assessment message(s). For more information, refer to the job aid Loan Selling Advisor - Collateral Representation and Warranty Relief Information. Selling Mortgages for Securities Using Loan Selling Advisor Page 15 Chapter 6 March 2018

130 Create Loans Import Results Page - Data Field Descriptions Field Name Definition Special Notes Loan Reference Product Label Warning Indicates the number of errors labeling the loan at the time of import. When you click on the value under the Loan Reference Product Label Warning column, you will be taken to the Loan Reference Product Label Warning Detail page for further information about the error. For more information, refer to the job aid Required Data Points to Label a Loan for ULDD. Status Indicates the status of your import file as follows: Status Description In Progress Completed Evaluation job is in process. If the status of some files is In Progress, click Refresh Import Status periodically to refresh the list. Evaluation has finished. Click on the record link to View Evaluation Issues, and proceed to print and/or export a report. Correct any errors accordingly in your Loan Origination System (LOS) or manually in Loan Selling Advisor. Tips to clear edits in your LOS: Run purchase edits upon import by selecting the Evaluate at Import option on the Import page. Print or export loan evaluation issues from the Import Results: Evaluation Errors Detail page or from View Evaluation Issues. This report shows critical and warning messages. Use the report to modify loans in your LOS. Error Re-import loans to Loan Selling Advisor and re-run the evaluation process. Loan Selling Advisor has timed out after 1 hour. In these rare cases, contact the Customer Support Contact Center (800-FREDDIE) for further assistance. Selling Mortgages for Securities Using Loan Selling Advisor Page 16 Chapter 6 March 2018

131 Create Loans Import Errors There are three types of errors you may receive when you import your file. The Import Loan Results page displays each of these errors and its associated number in the Import Errors, Allocation Errors, and/or the Evaluation Errors columns. Clicking the numbered links under each error column will identify and resolve any errors. Refer to the following table for descriptions of each error type. Error Type Import Errors Description Indicates the number of loans that could not be imported due to loan data syntax errors. These errors must be corrected before the loans can be successfully imported. In addition, loans that are not processed because the loan ID already exists in Loan Selling Advisor and the option to overwrite at Import was not selected, also are listed under this import error column. Example: Import File: Import Errors Detail page: The top section contains the file name, the number of loans processed, a summary of the number of loans that were not processed and the total UPB of the loan(s). The Import Errors table identifies the loan(s) and describes the type of error. Selling Mortgages for Securities Using Loan Selling Advisor Page 17 Chapter 6 March 2018

132 Create Loans Error Type Allocation Errors Description Indicates the number of loans that had a problem being allocated to the contract you specified at import. The Import Loans: Allocation Error Detail page will show loans that were unallocated or failed allocation with messages that indicate the reason for the failure. Example: Import Loan: Allocation Errors Detail page The top section contains the file name, the number of loans allocated to the contract, a summary of the number of loans that were not processed and the total UPB of the loan(s). The Allocation Errors table identifies the loan(s) and describes the type of error. Evaluation Errors Indicates the number of loans in the import file that did not clear critical purchase edits. The Evaluation Detail page will provide the error messages for each loan. Loans with critical errors will be listed first. You must correct these errors before your final delivery date for the loans to be in a Ready to Fund state. A W indicates that the file passed with warnings only. Example: View Evaluation Issues page: The top section contains a link for a Printer Friendly View and a button to export the Evaluation Issues in.csv format or the file name. The next section contains the File Name, the total number of loans evaluated and the total UPB of the loan(s). The table identifies the loan(s), whether the error is Critical or is a Warning, and describes the error. If there are multiple loans with errors, you will see corresponding error pages. Selling Mortgages for Securities Using Loan Selling Advisor Page 18 Chapter 6 March 2018

133 Create Loans Error Type Description The following table lists the type of errors and instructions on how to resolve them. Also, refer to the section Evaluate Loans in chapter 5 to learn how to evaluate loans from the Loan Pipeline. Resolving Error Types If you received Import errors Allocation errors Evaluation errors Then Go to your import file, correct the errors and re-import the loan. Correct errors and try to import/allocate the loan(s) again. Use the Evaluate Loan function to correct errors in your loan data. Critical Errors and Warning Messages When you view the Evaluation Issues Report, you will find two types of edits: critical errors and warning messages. The critical errors will display first. Critical errors prevent your loan from moving to a Ready to Fund status and must be corrected before the contract and / or loan can fund/settle. Be sure to review the error messages carefully as they provide guidance on how to resolve the errors. Warning Messages do not have to be corrected and do not prevent funding/settlement from occurring. However, Freddie Mac recommends that you review them to determine whether data is accurate and / or complete and take appropriate steps to clear them if necessary. Selling Mortgages for Securities Using Loan Selling Advisor Page 19 Chapter 6 March 2018

134 Create Loans Import from Loan Product Advisor Follow the steps below to create a new loan using the Import from Loan Product Advisor function. 1. From the main menu click Loans, and then select Import from Loan Product Advisor. 2. The Search for Loan in Loan Product Advisor page displays. Complete the required fields marked with a red asterisk *. 3. Click Search for Loan Product Advisor. The Search for Loan in Loan Product Advisor page re-displays with Loan Product Advisor transactions that meet your search criteria. Selling Mortgages for Securities Using Loan Selling Advisor Page 20 Chapter 6 March 2018

135 Create Loans 4. Determine if this is the loan you want to import. If not, repeat steps 1 and 2 above. 5. If this is the correct loan, click Import. The Create New Loan page displays, populated with the imported Loan Product Advisor values. 6. Ensure all the loan information or the minimum required data points to save the loan are complete. The minimum data points required to save a loan are marked with a red asterisk*. The import from Loan Product Advisor does not constitute a complete loan record. Certain data points must be present to save the loan. The minimum data points required to save a loan are marked with a red asterisk*. You will need to complete all minimum data points in the Create New Loan page before you can select Save as Draft or Finish. Selling Mortgages for Securities Using Loan Selling Advisor Page 21 Chapter 6 March 2018

136 Create Loans 7. Click Finish. Whether you create a loan in its entirety, enter partial loan information, or enter the minimum required data points, certain data points must be present to save the loan. The minimum data points required to save a loan are marked with a red asterisk*. Selling Mortgages for Securities Using Loan Selling Advisor Page 22 Chapter 6 March 2018

137 Chapter Warehouse Lender Release Process 7 Overview and Description of Form 996E, Warehouse Provider Release and Transfer A fully executed Form 996E, Warehouse Provider Release and Transfer, is required when an interim financing arrangement exists between the Seller and a Warehouse Lender. Under such an arrangement, the Warehouse Lender has provided the Seller interim financing in exchange for a security interest in, or beneficial ownership of, mortgages that are subsequently offered for sale to Freddie Mac. The mortgages, which are subject to the Seller s financing arrangement with the Warehouse Lender, are referred to in the Guide as Pledged Mortgages. By executing and transmitting Form 996E to Freddie Mac, the Warehouse Lender agrees to release, relinquish, transfer and assign to Freddie Mac all right, title or interest of whatever nature the Warehouse Lender has in the Mortgages listed in Appendix 1, Schedule of Pledged Mortgage(s), of Form 996E. Before beginning this process, you must verify that Freddie Mac has approved your Warehouse Lender s original, executed Form 990SF, Warehouse Provider Certificate of Incumbency with Exhibit A, a resolution that authorizes the identified employees to provide Freddie Mac with instructions to transfer funds as required in Guide Sections , , and Form 996E. ULDD Data Points for Pledged Mortgages When you create a loan in Loan Selling Advisor and the loan is a Pledged Mortgage, you have the option to import or manually enter the ULDD Data Points to identify the Warehouse Lender. The ULDD Data Points for Pledged Mortgages are shown below: Data Point Name Sort ID# Import Data or Manually Enter Data Warehouse Lender Indicator Sort ID Both Party Role Type Sort ID Import only Party Role Identifier Sort ID Both If you import these data points, you will not need to assign the Warehouse Lender on the Enter Settlement Details screen. For more information on importing data, refer to tab 9 of Appendix D [XLS] Freddie Mac XML Data Requirements Reference Tool V If you manually enter data, the Warehouse Lender Identifier and the Warehouse Lender Indicator data points can be accessed in the Warehouse Lender Details section of the Create/Modify loan screen. Data entered in this section will then carry over to the Enter Settlement Details screen. Selling Mortgages for Securities Using Loan Selling Advisor

138 Warehouse Lender Release Process See below for an example of the Warehouse Lender Details section. Effective Date for Special Delivery Data Requirements While Sellers may choose to deliver the new ULDD Data Points, now the Warehouse Lender Indicator will be required for all mortgages delivered beginning in May 2019 as part of ULDD Phase 3. The Warehouse Lender Identifier will be required when the Warehouse Lender Indicator is True. If you choose to deliver these data points now, and you import data, be sure to add these data points to your current ULDD delivery file. Refer to Guide Section for delivery instructions. In addition, if you deliver the data points now, you can export settlement details by individual Warehouse Lenders to simplify your reconciliation process. To export this data, select Loan Data and the Settlement Detail MISMO 3.0 Data Set. See below for an example of the Export Delivery Data screen. Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 7 December 2017

139 Warehouse Lender Release Process For more information on how to export data, refer to the Export Your Loan Data job aid and the Implementation Guide for Loan Selling Advisor Export - Sellers. How to Enter Settlement Details You are required to enter settlement details in Loan Selling Advisor for the contract and the loans associated with that contract before building Form 996E and Form 1034E. The table below identifies the actions to take in the Enter Settlement Details screen when you manually deliver data. For improved efficiency, we recommend accessing the Enter Settlement Details function from the Loan Options box within the Contract Details screen. This will reduce time spent searching for loans. Action Select the Warehouse Lender and/or Wire Instructions Select a Servicer Identifier Enter a Requested Settlement Date Select a Document Custodian Select Page (of loans) or Select All Enter Settlement Details Screen For Guarantor / MultiLender Contracts In the Enter Settlement Details: Guarantor/MultiLender screen, select the Warehouse Lender Name from the drop-down menu Do not select a Servicer Identifier. N/A Select a Document Custodian from the drop-down menu Click Update Loans For Cash Contracts In the Enter Settlement Details: Cash screen, select a set of wire instructions from the drop-down menu Do not select a Servicer Identifier. If you do not specify a requested Settlement Date, the system will default to ASAP funding. Select a Document Custodian from the drop-down menu for Servicing Retained contracts Click Update Loans Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 7 December 2017

140 Warehouse Lender Release Process Follow the steps below to Enter the Settlement Details: 1. Click the Enter Settlement Details function from the Loan Options panel of the Contract Details page. 2. The Enter Settlement Details: Guarantor/MultiLender page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 7 December 2017

141 Warehouse Lender Release Process 3. Enter the required information, Select Page or Select All 1 Loan and click Update Loans. 4. The Enter Settlement Details: Results page updates and re-displays with the selections you made. Click Back to Update Loans to select additional loans or click Back to Contract to return to the Contract Details page. Create/Build Form 996E In Form 996E, the Warehouse Lender is relinquishing its rights and interest in the Notes and loans sold to Freddie Mac and verifying the wiring instructions of the Warehouse Lender. After you have entered settlement details you are ready to build Form 996E with Appendix 1. Follow the steps below to Build Form 996E. Appendix 1, Schedule of Pledged Mortgages, is part of Form 996E and lists the mortgages subject to a Warehouse Lender s interest to be sold to Freddie Mac. Form 996E and Appendix 1 contain a seven-digit Form 996E ID number is included on Form 996E and Appendix 1 for tracking purposes, and both are required for processing and acceptance by Freddie Mac. Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 7 December 2017

142 Warehouse Lender Release Process Follow the steps below to build Form 996E: 1. From the Summary of Contract Terms, go to the Loan Options panel and click Build Form 996E. 2. In the Create/View Certification Forms: Build screen, identify the Pledged Mortgage(s) to include on Appendix 1 by clicking either the check box to the left of the Investor Contract Identifier, the box to Select Page (all mortgages on the page), or Select All (all mortgages). Click the column header for Investor Contract Identifier, Seller Loan Identifier or Primary Borrower Name to display the loans in sequential order on Appendix Click Build Form. The Form 996E Displays in a separate window. Review the form for accuracy. If acceptable, click Print and forward to the Warehouse Lender for processing. Contact the Warehouse Lender to verify that they can process your request timely. It is your responsibility to have the Warehouse Lender deliver the executed Form 996E with Appendix 1 to Freddie Mac in time to fund your contract. Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 7 December 2017

143 Warehouse Lender Release Process Appendix 1, Schedule of Pledged Mortgages, is part of Form 996E and lists the mortgages subject to a Warehouse Lender s interest to be sold to Freddie Mac. Form 996E and Appendix 1 contain a seven-digit Form 996E ID number for tracking purposes, and both are required for processing and acceptance by Freddie Mac. If you close the window without printing Form 996E, you will have to remove the loan from the Form 996E using the Create/View Certification Forms function accessible from the Settlement menu and repeat the steps above to re-generate Form 996E. Role Action Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 7 December 2017

144 Warehouse Lender Release Process Warehouse Lender Must review Form 996E and Appendix 1: Schedule of Pledged Mortgages against their records. If the forms are accurate, an employee of the Warehouse Lender identified on the Warehouse Lender s Certificate of Incumbency (Form 990SF) must sign and date Form 996E. Seller Warehouse Lender Must verify that Freddie Mac has approved the Warehouse Lender s Certificate of Incumbency and related documents as required in Guide Sections , and The Warehouse Lender must forward the fully executed Form 996E to Freddie Mac by , regular mail or overnight delivery service as follows: - Cust_Support_996@FreddieMac.com - REGULAR MAIL / OVERNIGHT DELIVERY: Freddie Mac 8250 Jones Branch Dr. McLean, VA Only the Warehouse Lender may deliver the Form 996E with Appendix 1 to Freddie Mac. Mortgage documents should be delivered directly to the Document Custodian for verification and certification pending purchase. Be sure to instruct your Warehouse Lenders not to forward extraneous documents such as bailee letters with Form 996E and Appendix 1. What Happens Next? Freddie Mac s Customer Support 996E area will review Form 996E and Appendix 1 and compare the listing of Pledged Mortgages against mortgage data in Loan Selling Advisor. If the information is satisfactory and complete, Freddie Mac will update Loan Selling Advisor to indicate acceptance of the Form 996E. Access the View Warehouse Lender Release function to view details on the acceptance. If there are discrepancies with the documents received from the Warehouse Lender or data in Loan Selling Advisor, Freddie Mac will not process Form 996E for release in Loan Selling Advisor. When this occurs, you will be contacted by Freddie Mac s Customer Support 996E area to discuss how to remedy the issue. Freddie Mac will not review a Form 996E unless Freddie Mac has accepted your Warehouse Lender s Form 990SF, Warehouse Provider Certificate of Incumbency, and related documents, as described in Guide Section and Freddie Mac recommends Sellers review the contents of the notification forwarded by the Warehouse Lender to verify the completeness of the documents. Missing and incomplete information will delay Freddie Mac s processing of your request. Follow the steps below to verify Form 996E is complete: 1. From the main menu, select Loans and then select View Loan Pipeline. Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 7 December 2017

145 Warehouse Lender Release Process 2. On the Loan Pipeline page, click the Advanced Search tab, enter your search criteria and click List Loans. Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 7 December 2017

146 Warehouse Lender Release Process 3. The search results display. Go to the column titled 996E Completed Date for the loan to verify if the Form 996E is complete. Freddie Mac requires at least four (4) business hours from receipt of the documentation from the Warehouse Lender to review and process the request. Contact Customer Support (800-FREDDIE) for assistance. To further assist you with the Warehouse Lender release process, please access the following job aids: Form 996E Tips and Best Practices Form 996E and Form 1034E Document Delivery Flow Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 7 December 2017

147 Chapter Note Certification Process 8 Overview This contains information on the Note certification process and instructions on the how to create the required forms, how to resolve certification issues and export certification information. Certification is the process of comparing Freddie Mac loan data to the Note for discrepancies and verifying that the information on the Note and required documents meet Freddie Mac s certification guidelines. The process includes reviewing the accuracy of signatures and assignment and endorsement chains. Document Custodians are responsible for verifying certain information contained in the Notes and required documents for the mortgages sold to Freddie Mac and for certifying that they have performed those verifications and that the original documents are in their possession. We refer to this process as certification or certifying the Notes. Background You must deliver Notes and any required documentation to your Document Custodian. A Seller/Servicer electing to use a Document Custodian other than Freddie Mac s Designated Custodian must contact Freddie Mac s Counterparty Credit Risk Management for approval. For information and requirements about contracting with a Document Custodian, please refer to Freddie Mac s Single-Family Seller/Servicer Guide and the Document Custody Procedures Handbook, which can be found at Required Forms and Documentation You must deliver to the Designated Custodian or your approved Document Custodian the following: Note Form 1034E or Note Delivery Cover Sheet (must accompany each delivery of Notes) Other documents that provide additional note terms, clarify legal terms, and/or complete the required documentation for a mortgage: Addendum to the Note Agreement to Convert Assumption Agreement Modification Agreement Power of Attorney Name Affidavit Signature Affidavit An Allonge Seller may use an Allonge to endorse a Note if certain conditions are met. See Guide section When the Designated Custodian certifies, and maintains the Note, the original assignment must remain with the Seller. When a third-party or self-custodian receives the Note, the assignment must also be sent to the Document Custodian for review and safekeeping. You must deliver the Form 1034E Custodial Certification Schedule, Form 1034ES Custodial Certification Schedule Summary, or the Note Cover Sheet along with your Notes to Freddie Mac s Selling Mortgages for Securities Using Loan Selling Advisor

148 Note Certification Process Designated Custodian or your Document Custodian. The Freddie Mac loan number is assigned once your loan is allocated to a contract or 1034 is built. Loan Selling Advisor makes it easy to print the loan numbers on labels for you. When using a Warehouse Lender, if they hold your Notes, you must send them the Form 996E, Warehouse Provider Release of Security Interest, Form 1034E, Form 1034ES or Note Cover Sheet. They in turn will forward all applicable forms to the Document Custodian. The Warehouse Lender executes the Form 996E to relinquish their rights and interests in the Notes sold to Freddie Mac and to verify the wiring instructions for the purchase price. Freddie Mac must receive and approve the fully executed Form 996E before funding will occur. The functions to create the Form 1034E, Form 1034ES and Form 996E can be accessed the in Loan Selling Advisor from the Contract Details page or by selecting Create/View Certification Forms from the settlement menu. If you are using a Warehouse Lender, allow enough time to for the Warehouse Lender to process and forward forms. The Warehouse Lender will sign and forward the Form 996E to Freddie Mac and will forward Form 1034E or Form 1034ES along with the Notes to your Document Custodian. Mortgage Note Certification Process The following information is a high-level process for the Note Certification process. It identifies the data being verified, where to forward required forms and documents, and how to troubleshoot Certification Issues. Compare Data The Document Custodian completes certification through Loan Selling Advisor. The Document Custodian will: Verify the data - The information on each note must match the corresponding information in Loan Selling Advisor or applicable Form 1034E. Verify the Note - The note must be original and complete. The Note must also be originated on a Uniform Instrument. Access Security Instruments for a complete list of current Uniform Instruments. Verify the chain of endorsements (Note). Verify the chain of assignments (Security Instrument). Once the Document Custodian has verified the data and that the documents comply with Freddie Mac s requirements, it will certify the loan in Loan Selling Advisor. Where to Forward Forms and Documents Freddie Mac s Designated Custodians, The Bank of New York Mellon Trust Company, N.A. (BNYM) and Wells Fargo Bank, N.A. (Wells Fargo), certify your Notes., Send the required documents via overnight delivery along with Form 1034E or Form 1034ES to: Freddie Mac Document Custodial Operations c/o The Bank of New York Mellon Trust Company, N.A 2322 French Settlement Road, Suite 100 Dallas, TX (800) or to Wells Fargo Bank, N.A Tenth Avenue SE Minneapolis, MN Certification Errors Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 8 March 2018

149 Note Certification Process A certification error occurs if information on the Note does not match the corresponding information in Loan Selling Advisor or the applicable Form If there are certification errors, you will be notified via and you must access the Review Certification Issues functionality to determine the proposed changes. If the status states Issue Outstanding, you must accept the proposed change or correct the documentation discrepancies before the loan can be certified and subsequently funded. Create/View Certification Forms Loan Selling Advisor allows you to build, edit, view and print the following forms and labels: Document Name Form 1034E Custodial Certification Schedule Form 1034ES Custodial Certification Schedule Summary The Note Delivery Cover Sheet Form 996E Warehouse Provider Release of Security Interest Print Labels Description Build this form when there are less than 1000 loans included on the form. Will generate when there are more than 1000 loans included on the form. This is an optional form and can be used when submitting the Form 1034ES. Form 996E is required for mortgages subject to Warehousing Lender financing. This option allows you to print your Freddie Mac Loan Numbers on Avery Labels #5267 to prevent you from manually writing Freddie Mac loan numbers on each individual note. You have the option of editing forms after they have been created. A summary Form 1034ES will generate when there are more than 1000 loans included on the form. You can view the detail when the summary form is generated in PDF format or you may export the loan detail. Loan Selling Advisor allows you to print your Freddie Mac Loan Numbers on Avery Labels #5267 to prevent you from manually writing Freddie Mac loan numbers on each Note. Freddie Mac lets you indicate the Certification Due Date to alert your Document Custodian when your Notes should be certified. If your loans are assigned to a cash contract, the certification due date automatically defaults to the expiration date of the contract. You must send the Original Note to the custodian prior to the expiration of the cash contract in order to receive timely funding and or to alleviate Pairoff fee. If your loans are assigned to a guarantor contract, the certification due date automatically defaults one business day before the final delivery date of the contract. All the loans must be certified on the final delivery due date of the contract to receive timely issuance of the Security Wire on the requested settlement date. Loan Selling Advisor does not pre-populate a certification due date for unallocated loans; however, you can assign a certification due date for loans allocated to a contract. The certification due date can be assigned or updated on the Create/View Certification Forms: Build page. The functions to create Form 1034E, Form 1034ES and Form 996E can be accessed in Loan Selling Advisor from the Contract Details page. Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 8 March 2018

150 Note Certification Process It can also be accessed by clicking Settlements and then Create/View Certification Forms. Use the following steps to create and view certification forms from the Contract Details page. 1. From the Contract Details page, click Build Form The Create/View Certification Forms: Build page displays. 2. Enter the applicable information and select the loan(s) by clicking the the appropriate check box. Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 8 March 2018

151 Note Certification Process You can sort using any of the underlined column headings before building the form. The default sort order is by Freddie Mac loan number. When building the form, verify that the loans you select are for the same Document Custodian. 3. Click Build Form to view Form 1034E. You are not required to complete the Update Certification Due Date to field; it is an optional field. 4. You may opt to print a labels at this time that contain Freddie Mac loan numbers by clicking Print Labels. The label page will launch in a separate window. 5. Ensure your printer contains Avery #5267 labels and click Print. 6. Forward Form 1034E to the Document Custodian or to the Warehouse Provider, if applicable. Print Freddie Mac Loan Number Labels You can print Freddie Mac loan number labels to place on the mortgage notes before forwarding them to the Document Custodian. Follow the steps below to print Freddie Mac loan numbers on labels. 1. From the Settlement menu, click Create/View Certification Forms. 2. Enter your search criteria and click Print Labels. Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 8 March 2018

152 Note Certification Process You must build the 1034E before you can print labels. 3. The Create/View Certification Forms: Print Labels page displays. 4. Select the loan(s) you want to print labels for by checking the box to the left. You can also select multiple loans from the options at the bottom of the page shown here. 5. After you have selected the loan(s), click Print Labels. The Freddie Mac loan number labels display in Adobe Acrobat. Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 8 March 2018

153 Note Certification Process 6. Ensure your printer contains Avery #5267 labels and then click File: Print to print the labels. Edit Certification Forms Loan Selling Advisor gives you the option to remove a loan from an existing certification form. You may remove a loan if you are unable to clear a certification issue, correct loan data on a certifiable field or to substitute the loan with another. To remove a loan from an existing form you will access the Create/View Certification Forms function. Follow the steps below to remove loans from certification forms. 1. From the Settlements menu, click Create/View Certification Forms. 2. The Create/View Certification Forms: Search page displays. Select the type of form you would like to edit and enter your search criteria. Click Edit Form. Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 8 March 2018

154 Note Certification Process 3. The Create/View Certification Forms: Edit page displays. 4. Select the loan(s) you want to remove by checking the box. You can select multiple loans from the options at the bottom of the page. Click Remove Loans at the bottom of the page. 5. The Manage Settlement Forms: Edit Confirmation page displays confirming the selected loans were removed. 6. Click the Certification Batch Identifier link. The updated form opens in a separate window for you to view and/or print. Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 8 March 2018

155 Note Certification Process If you want to build Form 1034E for multiple contracts or loans, build Form 1034 using the View/Create Certification Forms function. Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 8 March 2018

156 Note Certification Process Review Certification Issues The Document Custodian will review the Notes for completeness and accuracy. If they are satisfactory, the Document Custodian will certify the Notes in Loan Selling Advisor and the loan status will indicate Certified. If the Notes contain errors or discrepancies the Document Custodian will indicate a status of Issues Outstanding. Loans with a status of Issues Outstanding cannot be certified and will not fund until the errors are corrected. You will access the Review Certification Issues function to view the Document Custodian s proposed changes. If there is a data discrepancy, you accept the proposed change online and the loan will automatically certify and the certification status will change to Certified. If you reject the discrepancy, it must be resolved before the loan can fund. If there is a documentation issue or other discrepancy, you must contact the Document Custodian to work through the issue/discrepancy. When you accept data changes, you must re-evaluate your loans. If you are unable to resolve a data and/or document discrepancy and your contract terms allow, you may deallocate the loan from the contract and substitute it with another loan. However, the new loan will be subject to all standard contract requirements and must be certified by the Document Custodian. Follow the steps below to review and accept or reject certification issues: 1. From the Loan Pipeline s search results, go to the column titled Certification Status. You will see a status of New (for loans that have not been certified), Certified (for loans that were certified) or Issues Outstanding (for loans with data or documentation discrepancies). 2. If the status indicates the loan is Certified, no further action is required. If the status indicates Issues Outstanding, go to step Go to the Settlement menu and click Review Certification Issues. Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 8 March 2018

157 Note Certification Process 4. In the Settlement: Review Certification Issues page, select the loan(s) you want to review data and/or documentation issues for by checking the box next to desired loan(s). Or, click Select All to select all loans on the current page and click the Review Issues button. You have the option to deallocate loans from the contract and remove them from Form 1034E if there are unresolved certification issues. Click the appropriate option to execute either of these actions. 5. The Settlement: Validate Certification Issues page displays the first loan you selected. In this example, the Document Custodian is proposing a data change. Click the Submit button after making your selections. If the proposed change is acceptable to you, click Accept. If the change is not acceptable, click Reject and be sure to click the Deallocate from Contract or Deallocate From Contract & Remove From Form 1034 buttons in the Settlement Review Issues page above. If you elected to remove the loan from the 1034E and decide to use a different Document Custodian for Note certification, you will need to request the return of the Note or other documents from the Document Custodian/Designated Custodian. For more information, refer to How to Request Physical or Constructive Possession of Documents. Selling Mortgages for Securities Using Loan Selling Advisor Page 11 Chapter 8 March 2018

158 Note Certification Process 6. If there is another loan to review, Loan Selling Advisor will automatically advance you to it if you accepted or rejected the proposed change on the previous loan or click Skip to Next Loan. In this example, the second loan has a documentation issue and you will need to contact the Document Custodian to resolve the issue. 7. You will continue through this process until you have reviewed all loans. If there are no further loans to review, return to the Contract or Loan Pipeline to view the status change of Certified. Freddie Mac recommends that you evaluate the loan(s) immediately after accepting the proposed data changes. Review Certification Issues Report If you want to add a to substitute a loan for a loan that was deallocated from the contract, you must build a Form 1034E for that loan. Folow the instructions in this chapter on Create/View Certification Forms. The Form 1034E will build and display only the newly added loans. You can export certification issues at a contract or loan-level. Follow the steps below to export data. 1. From the Data Sets menu, select the Export Delivery Data function 2. The Export Delivery Data page displays. Select Loan or Contract Data, the Certification Issues MISMO 3.0 Data Set a File Format, a minimum of 2 search criteria fields and then click Create Export File. Selling Mortgages for Securities Using Loan Selling Advisor Page 12 Chapter 8 March 2018

159 Note Certification Process Selling Mortgages for Securities Using Loan Selling Advisor Page 13 Chapter 8 March 2018

160 Note Certification Process 3. The Export Data window will display a message with the number of records that matched the filter criteria specified for the report. Click the Build File in Background button. 4. Go to Data Sets menu and select View Export Results. 5. The View Export Results page displays your file download results. Select the file name you want to export. Be sure the file Status is complete. If the Status displays as processing, click the refresh button to receive a Completed status. 6. Click the File Name for the file you want to export. Click Open to view or Save to save your file in.csv format. How to Request Physical or Constructive Possession of Documents If a certification issue cannot be resolved and you intend to send the Note to a different Designated Custodian or the Mortgage is paid off, you must request a return of a Note or other documents as indicated in the table below. If the Designated Custodian is BNYM BNYM AND you are Utilizing their specified internet website Not utilizing their specified internet website Then Send a Web Release Request using BNYM s specified Internet web sites at or Forward a fully executed Form 1036, to Freddie.Mac.Releases@bnymellon.com Wells Fargo N/A a fully executed Form 1036 to Wells Fargo s. Contact their Release Team for instructions at (612) In transfers of custody, the Servicer pays the fees and expenses for the offboarding, transporting, on-boarding, and recertifying the Note files being moved Selling Mortgages for Securities Using Loan Selling Advisor Page 14 Chapter 8 March 2018

161 Chapter Security Wire Instructions 9 Security Wire Instructions Overview If you are selling mortgages through the Guarantor or MultiLender programs, you are required to Setup, Save, Approve and Manage Security Wire Instructions in Loan Selling Advisor and you are responsible for the accuracy of this information. The wire instructions indicate where to send the security associated with all of the mortgages in a Guarantor or MultiLender contract. Wire instructions must be assigned by 8:00 pm ET on the final delivery date for the contract to move into a ready to fund state. However, changes may be completed up until 8:00 pm ET on the last business day before the settlement date. When creating and saving Security Wire Instructions, multiple user roles are required to perform distinct functions: Setup Administrator, Setup Manager and Security Wire Assigner. The Setup Administrator must set up the security wire instructions and the Setup Manager must approve them (the employee assigned as the Setup Manager must also be designated on your Certificate of Incumbency as a person authorized to provide Freddie Mac with instructions (or modify instructions) to transfer funds or securities on your behalf. Freddie Mac requires that you designate different employees for each of these user roles to maximize security and risk controls. Security Wire Instructions Process Flow The Setup Administrator user role has the ability to create and add a security wire to Loan Selling Advisor. The Setup Administrator may perform the following operations: Create a new security wire instruction (A minimum of one set of wire instructions must be set up in Loan Selling Advisor.) Modify the effective and expiration date of an existing security wire instruction Delete a set of security wire instructions If data needs to be modified once the instructions are set up - other than the effective and expiration date - the Setup Administrator must expire the instructions and create a new set of instructions. Selling Mortgages for Securities Using Loan Selling Advisor

162 Security Wire Instructions Once the Setup Administrator has created the security wire instructions, the Setup Manager must approve them. The Security Wire Assigner can only assign approved wire instructions. The Security Wire Assigner can perform the following operations: Select one or many wire instructions for the contract Assign each wire instruction a specific dollar amount or set to increase or decrease as the security amount on the contract increases While wire instructions must be assigned by 8:00 PM (ET) on the Final Delivery Date in order for the contract to move into a Ready to Fund state, edits to the wire instructions can be made until 8:00 PM ET on the last business day before the Settlement Date. If wire instructions or if applicable, Form 996E, need to change on the Funding date, you must contact Customer Support (800)-FREDDIE. The Wire Assigned status of a contract is available for viewing in the Contract Pipeline or from the Loan Pipeline page. A Yes or No will follow the Wire Assigned status. The Loan Pipeline page consist of several columns of information, one of which is Wire Assigned. Security Wire Instructions Data Field Descriptions Use the table to determine what information is required for Loan Selling Advisor to create wire instructions. Use the page identifier number in the first column to locate Loan Selling Advisor data fields. Wire Instruction Data Field Descriptions Page Identifier Data Field Name Description 1 Security Wire Instructions Name Identifier assigned by Seller/Servicer. This field is required. Tip: The name in this field is for the Seller/Servicer s internal use to help identify the security wire instructions. This name should be unique. 2 ABA Routing Number 9-digit American Banking Association (ABA) Routing Number. Must be eligible for Book-Entry Securities. This is a required field. For more information, visit: 3 Abbreviated Bank Name This information is auto-populated. This is the receiving bank s Telegraphic Abbreviation (Bank Short Name) associated with the ABA routing number. Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 9 December 2017

163 Security Wire Instructions Wire Instruction Data Field Descriptions Page Identifier Data Field Name Description 4 Third Party/FRB Sub Account Name This is the receiving bank s Federal Reserve Bank book-entry account commonly referred to as Third Party account. Enter only the Third Party/Sub Account name that is generally the Account Type (CUST, TRUST, INV, 1010, 1020, etc.) or a Dealer Abbreviation (BEARSMBS, MSMPI, GSMBS). This is a required field. Caution: Do not use punctuation or special characters. Examples include /,\, (,), %. Enter Beneficiary Name, Account Number, Contact Name and phone number, and any other data in the Further Instructions data field. 5 Effective Date Date the wire instructions are created. The current date should be entered. 6 Expiration Date This is the date the wire instructions expire. Defaults to Indefinite. Only enter a date if you need to assign an expiration date to the instructions in order to delete it. 7 Further Instructions You may enter information that would follow the Third Party/FRB Sub-Account Name. This may include: Beneficiary Name Beneficiary Account Number Contact Name and Phone Number Caution: When entering data, allow text wrap. Do not use the carriage return (Enter key) and do not enter punctuation. Use only spaces to separate entries. Setup Security Wire Instructions Only the user role Setup Administrator has access to this functionality. Follow the instructions below to set up wire instructions in Loan Selling Advisor. 1. From the main menu, click Settlements and then click Setup Security Wire Administration. Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 9 December 2017

164 Security Wire Instructions 2. The Customer Setup page appears. Click Setup Security Wire Instructions. 3. The Setup Security Wire Instructions page displays. Click Create New. 4. The Create New Security Wire Instructions page displays. Complete the following required fields: Security Wire Instructions Name ABA Routing number Third Party/FRB Sub-Account Name Effective Date Expiration Date Caution: Do not use punctuation or special characters for the Third Party/FRB Sub Account Name. Examples include /, \, (, ), %. Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 9 December 2017

165 Security Wire Instructions 5. Complete additional data fields as necessary and then click Save. The Create or Review Security Wire Instructions page displays the set of wire instructions you created displayed in the list. 6. Click Back to Customer Setup to return to the previous page or click Create New to add another wire instruction. Edit Security Wire Instructions Before Approval The Setup Administrator can edit the security wire instructions. Follow the procedure below to edit security wire instructions before approval. 1. From the main menu, click Settlements and then click Setup Security Wire Administration. Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 9 December 2017

166 Security Wire Instructions 2. The Customer Setup page appears. 3. Click Setup Security Wire Instructions. The Setup Security Wire Instructions page displays. 4. Select the Security Wire Instructions Name that you would like to edit by clicking the button to the left of the name and then click Edit. The Security Wire Instructions page displays. 5. Make the necessary modifications. You can only make changes to the following fields: Security Wire Instructions Name Third Party/FRB Sub-Account Name Effective Date Expiration Date Further Instructions Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 9 December 2017

167 Security Wire Instructions If you need to make changes to any of the required data fields such as the ABA routing number, you must expire the wire instructions first, and then create a new set of instructions. 6. After you have made your modifications, click Save. The Create or View Security Wire Instructions page redisplays. 7. Select another Security Wire Instructions to edit or view, or click Create New to add new instructions. If you are done, click Back to Customer Setup to return to the previous page. Security Wire Instructions Approval The Setup Manager must approve security wire instructions before they can be assigned to a security. Follow the procedures below to approve security wire instructions. 1. From the main menu, click Settlements and then click Setup Security Wire Administration. 2. The Customer Setup page displays. Click Setup Security Wire Instructions. The Pending Security Wire Instructions page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 9 December 2017

168 Security Wire Instructions 3. Click on the Security Wire Instructions Name you want to approve. The Review Security Wire Instructions page displays. 4. To approve the security wire instructions, click Approve. The Security Wire Instructions Pending Approval page re-displays with any remaining wire instructions to approve. 5. To reject the wire instructions, click Reject With Comments and the Send Security Wire Instruction Comments page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 9 December 2017

169 Security Wire Instructions 6. Complete the required fields and click Send. The Pending Security Wire Instructions page redisplays. 7. If there are no more wire instructions to approve, click Back to Customer Setup to return to the Customer Setup Home page. Edit Security Wire Instructions After Approval The Setup Administrator can edit the effective and expiration date of the security wire instructions after they are approved. Follow the procedure below to edit security wire instructions after approval. From the main menu, click Settlements and then click Setup Security Wire Administration. 1. The Customer Setup page displays. 2. Click Setup Security Wire Instructions. The Setup Security Wire Instructions page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 9 December 2017

170 Security Wire Instructions 3. Click the set of wire instructions you want to edit by selecting the radio button next to it and then click Edit. The Edit Security Wire Instructions page displays. 4. Make necessary modifications. You can only make changes to the Effective Date and Expiration Date fields. If you need to make changes to any of the required data fields such as the ABA routing number, you must expire the wire instructions first, and then create a new set of instructions. 5. Click Save. The Create or Review Security Wire Instructions page redisplays. 6. Click Back to Customer Setup to return to the Customer Setup page. Expire Security Wire Instructions As a Setup Administrator, you may not expire the instructions (if currently assigned to any pools) without removing the instructions from the pools or waiting until after settlement. Follow the procedure below to expire security wire instructions. 1. From the main menu, click Settlements and then click Setup Security Wire Administration. 2. The Customer Setup page displays. Click Setup Security Wire Instructions. The Setup Security Wire Instructions page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 9 December 2017

171 Security Wire Instructions 3. Click the set of wire instructions you want to expire by selecting the radio button next to it. Click Edit. The Edit Security Wire Instructions page displays. 4. Enter the current date or a future date in the Expiration Date field. The expiration becomes effective the day after the expiration date. Click Save. Delete Security Wire Instructions Follow the procedure below to delete security wire instructions. 1. From the main menu, click Settlements and then click Setup Security Wire Administration. Selling Mortgages for Securities Using Loan Selling Advisor Page 11 Chapter 9 December 2017

172 Security Wire Instructions 2. The Customer Setup page displays. Click Setup Security Wire Instructions. The Setup Security Wire Instructions page displays. 3. Click the set of wire instructions you want to delete by selecting the radio button next to it. The set of wire instructions you select must have passed the expiration date. If a wire instruction has been previously approved, remember to remove the wire instruction from the PC Pool before deleting. 4. Click Delete. A confirmation message appears: Are you sure you want to permanently remove this set of wire instructions? 5. Click OK. The security wire instructions are permanently deleted. View Security Wire Instructions To view your security wire instructions, follow the steps below. 1. From the Welcome to Loan Selling Advisor page click Admin. The Customer Setup home page displays. 2. Click Setup Security Wire Instructions. The Pending Security Wire Instructions page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 12 Chapter 9 December 2017

173 Security Wire Instructions 3. Click All in the upper right corner. The View Security Wire Instructions page displays. 4. Click the Security Wire Instructions Name for the set of security wire instructions you want to view. The Review Security Wire Instructions page displays. 5. If you want to send comments for these wire instructions, click Send Comments or click Back to Setup Security Wire Instructions to view another set of wire instructions. Assign Wire Instructions from the Contracts Details page Only the Security Wire Instructions Assigner can perform the operation of assigning wire instructions. This function is completed from the Contract Details page. Follow the steps below to assign security wire instructions. 1. From the Contract Details page click View/Assign Wire instructions in the Contract Options box. 2. The Assign Security Wire Instructions page displays. Selling Mortgages for Securities Using Loan Selling Advisor Page 13 Chapter 9 December 2017

174 Security Wire Instructions 3. Click on the Wire Instructions drop-down menu to select the wire instructions you want to assign to this contract. 4. Enter the wire amount in the Wire Amount data field or click the check box Set wire amount to the final allocated loan UPB. You can view the allocated loan UPB in the Wire Amount Information box displayed on the page. The sum of the security wire amounts must be less than or equal to the security amount. 5. Click Add Wire. The Assign Security Instructions page re-displays with the wire you just added. 6. Click Save Security Wire Instructions. The Assign Security Wire Instructions Confirmation page displays a message that the wire instructions have been successfully saved. Selling Mortgages for Securities Using Loan Selling Advisor Page 14 Chapter 9 December 2017

175 Security Wire Instructions The entire unpaid principal balance of the PC Pool (Security) must be assigned wire instructions before the contract and allocated loans can enter into a Ready to Fund state. Remove or Edit a Wire Instruction Assignment from the Contract Details page As a Setup Administrator, you can remove or edit existing wire instructions. You may increase or decrease the amount of the wire or set the amount of the wire instruction to the final allocated loan UPB. To edit the wire instructions, you must remove the assignment and then add the wire instructions back with your modifications. Follow the instructions below to remove and edit a wire instruction from a contract. 1. From the Contract Details page click View/Assign Wire instructions in the Contract Options box. Selling Mortgages for Securities Using Loan Selling Advisor Page 15 Chapter 9 December 2017

176 Security Wire Instructions 2. The Assign Security Wire Instructions page displays. 3. Select the wire instructions you want to remove or edit from the Wire Instructions drop-down menu. To Remove: Click the red delete button to the right of the security wire information. The Assign Security Wire Instructions page re-displays with the selected wire assignment removed from the contract. Selling Mortgages for Securities Using Loan Selling Advisor Page 16 Chapter 9 December 2017

177 Security Wire Instructions Click Save Security Wire Instructions. The Security Wire Instructions Confirmation page displays a confirmation message the wire instructions have been successfully saved. To Edit: Enter the wire amount in the Wire Amount data field or click the check box Set wire amount to the final allocated loan UPB. You can view the allocated loan UPB in the Wire Amount Information box displayed on the page. The sum of the security wire amounts must be less than or equal to the security amount. Click Add Wire. Click Save Security Wire Instructions. The Security Wire Instructions Confirmation page displays a confirmation message the wire instructions have been successfully saved. Selling Mortgages for Securities Using Loan Selling Advisor Page 17 Chapter 9 December 2017

178 Chapter Contract Fulfillment and Settlement 10 Overview This chapter provides guidance on finalizing the contract and meeting Freddie Mac s delivery requirements. For the Guarantor and MultiLender Swap programs, settlement occurs when Freddie Mac purchases the mortgages and sells the PCs or Giant PCs to the Seller. For purposes of the Freddie Mac Single-Family Seller/Servicer Guide, the Settlement Date is the Funding Date. Mortgage delivery meeting Freddie Mac s delivery requirements must be completed in advance to meet the Settlement Date. Best Practices for Successful Delivery and Settlement Sellers must comply with Freddie Mac s delivery requirements in order to receive timely Settlement. Delivery and contract fulfillment requirements are summarized below and must be completed no later than 8:00 PM, Eastern Time (ET) the Business Day before the Final Delivery Date in order for the contract to enter the Settlement Cycle: All loan delivery data is complete and accurate Loan Selling Advisor critical purchase edits are cleared Settlement Details are entered, if applicable (known in Loan Selling Advisor as Enter Settlement Details) Notes are delivered to and Certified by the Document Custodian. Pool Valid flag must = Yes Contract status must be in Ready to Fund The following processes must be completed no later than 8:00 PM (ET) one Business Day before the Settlement Date of the contract in order to meet the requested Settlement Date of the contract: Security Wire Instructions are setup/approved/saved/assigned and wire amounts are correct Form 996E, Warehouse Provider Release and Transfer, if applicable, recorded by Freddie Mac by 12:30 PM (ET) one Business Day before the Settlement Date. The exception to this process is Early Funding Guarantor single issue and Multi- Lender contracts. Refer to the Tips for Delivering Early Funding Contracts The Settlement Cycle and How it Works The Settlement Cycle is 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. Once a contract enters the Settlement Cycle, loan edits (including removing and adding loans) and contract product modifications are not permitted. Once the contract is in a Settlement Locked status, the only data that can be modified is the contract name or the Settlement Date. The exception to this process is Early Funding Guarantor. Refer to the Tips for Delivering Early Funding Contracts). For more information on the Settlement Cycle, refer to Chapter 2, Guarantor and MultiLender Contracts, in this user guide. The Settlement Cycle begins the morning after the Final Delivery Date and ends on the Settlement Date. Settlement Cycle, funding cycle and purchase cycle are terms that can be used interchangeably in the Loan Selling Advisor. Selling Mortgages for Securities Using Loan Selling Advisor

179 Contract Fulfillment and Settlement To help you better understand the requirements and task associated with meeting delivery requirements and the timing of those tasks, refer to the table below. It provides an example of actions to take before and after the contract enters the Settlement Cycle. Timing and Tasks to Meet Delivery Requirements The Business Day before the Final Delivery Date Access Contract and Loan Pipelines to identify and resolve outstanding issues that may prevent timely settlement Enter Settlement Details Forward Notes and other required documents to the Document Custodian Forward Form 996E, if applicable, to the Warehouse Lender This is the final day to: By 8 PM (ET) on the Final Delivery Date Make sure all loans are allocated to the contract Last day to Modify or Remove loans Validate pools [Pool Valid=yes] Evaluate Loans and clear all critical purchase edits Resolve any outstanding certification issues As a safety measure, Assign and Save Security Wire Instructions Loans are automatically priced upon allocation. The exception to this process is Early Funding Guarantor. Refer to the Tips for Delivering Early Funding Contracts) Access Settlement Statements Day 1 of the Settlement Cycle View, print or export: o Purchase Statement o Funding Details For Live Trade BU/BD contracts, you can access the Funding Details two Business Days before the Settlement Date. Before 8 PM on the Business Day before the Settlement Date Settlement Date This is the final day to: Assign/save or change/modify Security Wire Instructions Ensure Form 996E, if applicable, has been received and recorded and/or processed by Freddie Mac Form of Additional Supplement, if applicable, must be received and process by Freddie Mac. Securities are issued The Settlement Cycle is selected when the contract terms are created. The number of settlement cycle days can range from one to five days based on the contract execution. Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 10 December 2017

180 Contract Fulfillment and Settlement Tasks to Fulfill Contract Delivery Requirements To achieve timely settlement, you must ensure all contract fulfillment and delivery requirements are met. Note, Freddie Mac does not require a specific order in which to carry out the tasks for delivery, however, certain tasks can only occur after the completion of a preceding and/or dependent task. For example, critical evaluation edits can be cleared only if loan data is present. Where there is no dependence, your organization may follow a different process depending on your internal process flow. In any event, Freddie Mac Settlement will only occur after all requirements are met. The following table describes the delivery task and links you to the section in this user guide that contains instruction on how to complete the task: Delivery Task Ensure all loan data is complete and accurate, and clear all critical purchase edits. Enter Settlement Details, if applicable. Link to Instructions/Tips Click link to view the information in this guide. How to Evaluate Loans Enter Settlement Details Chapter in This User Guide Chapter 5, Manage Loans Chapter 10, Contract Fulfillment and Settlement Build Form 996E and forward to the Warehouse Lender, if applicable. Create/Build Form 996E Chapter 7, Warehouse Lender Release Process Build Form 1034E & forward with Notes to the Document Custodian. Create Certification Forms Chapter 8, Note Certification Process Validate the Pool and ensure the Pool Valid status in the Contract Details screen displays a status of Yes. Pooling Criteria and Pool Validation Overview Chapter 10, Contract Fulfillment and Settlement Ensure the Approval Status Summary section in the Contract Details screen displays Approved or Not Applicable. If it displays Incomplete, you may have to forward the Additional Supplement to Freddie Mac, if applicable. Approval Status Summary Chapter 10, Contract Fulfillment and Settlement Assign Security Wire Instructions. Ensure they are valid and that the amount of the wire is correct. Assign Wire Instructions Chapter 9, Security Wire Instructions What happens if a contract fails settlement? It s important to note that while a contract can enter the Settlement Cycle, it can fail settlement due to missing information and/or the reasons listed below. Contracts will fail settlement one business day before the Settlement Date: Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 10 December 2017

181 Contract Fulfillment and Settlement Form 996E has not been recorded by Freddie Mac. Security Wire Instructions have not been assigned and/or have not been setup/approved/saved in Loan Selling Advisor, or An incomplete Form of Additional Supplement, if applicable. Freddie Mac has the right to cancel or move Settlement Date, as applicable, if the Seller does not complete the above delivery timely requirements by 8:00 PM (ET) one Business Day before the Settlement Date. If this occurs, one of two possible actions will occur: If the contract fails and it is NOT the end of the month, Then Freddie Mac Will automatically advance the Settlement Date by one Business Day and will send you an notification. it IS the last day of the month, Will void the contract because Loan Selling Advisor cannot move the Settlement Date to the following month and will send you an notification. Refer to Guide Section and Chapters 6101, 6102, 6203, 6204 and 6205 for additional guidance. Pooling Criteria and Pool Validation Overview The pool valid status indicator displays in the Funding section of the Contract Details screen and indicates whether the contract you have created meets the criteria for a valid pool. A valid Gold PC Pool must have a security amount greater than $1 million. In addition, the aggregate UPB of all relocation mortgages, extended buydown mortgages, or super conforming mortgages, as applicable, may not exceed 10 percent of the aggregate UPB of all mortgages in the applicable PC Pool unless your Purchase Documents provide the ability to deliver Gold PC Pools with a higher UPB percentage of these mortgages. Refer to: Guide Chapter 6202 for pooling requirements. Your Master Agreement and/or other Pricing Identifier Terms for any negotiated provisions for pooling requirements for mortgages with special characteristics. The minimum dollar amount for a commitment entered into under the MultiLender Swap program is $1,000. The restrictions set forth above regarding relocation mortgages, extended buydown mortgages and super conforming mortgages also apply to deliveries under the MultiLender Swap program. See Guide Section for additional information. A valid WAC ARM PC Pool must have a security amount of $500,000 or greater. Under the WAC ARM Guarantor program, the aggregate UPB of extended buydown mortgages may not exceed 10 percent of the aggregate UPB of all the mortgages in the applicable WAC ARM PC Pool. See Guide Section for additional information. Validate Pool Your contract will not move forward into the Settlement Cycle if pool validation criteria have not been met. Use the Validate Pool link (located in the Contract Options box) to have the Loan Selling Advisor check for pool validation criteria at any time. Each time you modify loans or modify your contract you must revalidate the pool. To validate a pool, follow the instructions below. Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 10 December 2017

182 Contract Fulfillment and Settlement 1. From the Welcome to the Loan Selling Advisor page, enter the Investor Contract Identifier and click search. 2. The Contract Details page displays. Click Validate Pool in the Contract Options panel. A message will display Your Validate Pool request is processing. Please wait for the request to complete before making additional changes to your contract. You will need to re-access your page to see your updated contract. Click Ok and click the Refresh button in the top right corner to update the Pool Valid status. 3. The Pool Valid status will update and display a Status of Yes or No. If the Status is Yes, the pool has been validated. If the pool has not been validated, click the No status hyperlink to view why the pool could not be validated. Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 10 December 2017

183 Contract Fulfillment and Settlement 4. Review the message and click X to close the window. 5. Take the appropriate actions to meet the Validate Pool criteria and repeat the steps above until the Pool Valid status is Yes. 6. Always click the Refresh button after clicking the Validate Pool link. Approval Status Summary The Approval Status Summary indicates whether Freddie Mac has received the Form of Additional Supplement if required by your Purchase Documents for a specific pooling product. Presently, there are no specific pooling products that require a Form of Additional Supplement. See Guide Section for more information. One of three statuses may display: Approval Status Not Applicable Incomplete Approved Description This contract does not require the Form of Additional Supplement. This contract requires the Form of Additional Supplement and Freddie Mac has not received the form. This contract requires the Form of Additional Supplement and Freddie Mac has received and approved the form. If an Additional Supplement is required, Freddie Mac must receive it no later than the Final Delivery Date. Until Freddie Mac receives and approves the Form of Additional Supplement the contract will not move to a Ready to Fund Status. The form must be received before 8:00 PM (ET) one Business Day before the Settlement Date. If the Form of Additional Supplement is not received timely, Loan Selling Advisor will automatically advance the Settlement Date by one Business Day and will send you an notification. The Approval Status Summary indicator is located on the Contract Details screen and an example is displayed below. Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 10 December 2017

184 Contract Fulfillment and Settlement When and Why Should I Enter Settlement Details? Access this functionality if you are performing any of the following: Assigning Warehouse Lender name, if applicable Assigning an alternate Servicer, other than the default Servicer. If you select a Servicer Identifier that is different from the Designated Servicer # you will receive a critical edit if the validation of the Servicing Option and Designated Servicer selected for the contract fails. Assigning an alternate Document Custodian, other than the default Document Custodian For Guarantor and MultiLender contracts, the seller must assign the security wire instructions. For more information on this function, refer to Chapter 7, Warehouse Lender Release Process, in this user guide. View Settlement Statements Overview Loan Selling Advisor generates settlement information via reports that are available the morning after the Final Delivery Date and/or the first day of the Settlement Cycle. Access these reports using the View Settlement Statements link on the Settlements main menu. The following reports are available: Settlement Summary (Purchase Statement) Funding Detail Report For Live Trade BU/BD contracts, you can access the Funding Details two Business Days before the Settlement Date. The Settlement Summary discloses the total amount of the Security wire including settlement interest. The report is available as soon as the contract status reflects Settlement Locked. View Settlement Statements 1. From the Settlements menu, click View Settlement Statements. Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 10 December 2017

185 Contract Fulfillment and Settlement 2. The View Settlement Statements: Search page displays. 3. Select the Execution Type of Guarantor, MultiLender or Guarantor/MultiLender. 4. Enter your search criteria and click View Contracts. The View Settlement Statements screen displays with your search results. 5. Select the contract by clicking the checkbox next to the Contract Name then click the applicable button to view or export the Purchase Statement or Funding Details. Selling Mortgages for Securities Using Loan Selling Advisor Page 8 Chapter 10 December 2017

186 Contract Fulfillment and Settlement 6. Click View Purchase Statements to view the Loan Purchase Statement or click View Funding Details to view the Funding Detail Report. The information you requested, either purchase statements or funding details, will display in Adobe Acrobat (.pdf) format. 7. Click Export Funding Details to export funding details in the comma delimited (.csv) format. You may save or open the file. 8. To print, click the printer icon in the browser toolbar. The Purchase Statement provides summary level purchase contract information. This report is available when the contract status reflects Settlement Locked (the first day of the Settlement Cycle). Form 15A (for Gold PCs) and Form 15C (for WAC ARM PCs) are available for Guarantor and MultiLender contracts. Following is an example: Selling Mortgages for Securities Using Loan Selling Advisor Page 9 Chapter 10 December 2017

187 Contract Fulfillment and Settlement The Funding Details Report provides detailed loan information for accounting and investor reporting purposes. This report is available as soon as the contract status reflects Settlement Locked (the first day of the Settlement Cycle. For Live Trade BU/BD contracts, you can access the Funding Details two Business Days before the Settlement Date. Following is an example: Selling Mortgages for Securities Using Loan Selling Advisor Page 10 Chapter 10 December 2017

188 Contract Fulfillment and Settlement Export Funding Detail Follow the steps below to export funding detail. 1. From the View Settlement Statements page, enter your search criteria and click View Contracts. 2. Your search results display. Select the contract you want to export by clicking the check box to the left of each contract name. 3. The File Format will default to Comma Delimited. Click Export File. 4. A window appears asking if you want to Open this file from its current location or if you want to Save this file. Make your selection. 5. If you choose Open this file from its current location, the Funding Detail data will open in the comma delimited program chosen, for example, Excel. 6. If you choose Save this file, the Save As window appears. Type in the name of your file in the File Name field and click Save. 7. When the download is complete, you will be able to open the file or close the window. To view your file, access it the same way you access other files on your computer. Selling Mortgages for Securities Using Loan Selling Advisor Page 11 Chapter 10 December 2017

189 Contract Fulfillment and Settlement Guarantor Pool Supplement Information For each PC Pool formed under the Guarantor program, Freddie Mac will make a Pool Supplement available on FreddieMac.com/mbs/ and via a link in the Loan Selling Advisor to the Form 15 (Form 15A for Gold PCs, Form 15C for WAC ARM PCs), which will be available on the first day of the Settlement Cycle. The Pool Supplement contains information about the mortgages in the PC Pool as of the Settlement Date. You may also obtain a copy of the Pool Supplement by contacting Investor Inquiry at (800) , or via at Investor_Inquiry@freddiemac.com. If the information in the Pool Supplement is inaccurate or incomplete, you must immediately inform Freddie Mac and provide Freddie Mac with any corrections necessary. Neither you nor any of your affiliates may make any use of the Pool Supplement if any information contained therein is inaccurate or incomplete. For more information, refer to Guide Section MultiLender Pool Supplement Information For each PC Pool or Giant PC Pool formed under the MultiLender Swap program, Freddie Mac will make available on a Pool Supplement, information about the mortgages in the PC Pool, or a Giant Offering Circular Supplement containing information about the PCs underlying the Giant PC Pool as of the Settlement Date. The Pool Supplement and Giant Offering Circular Supplement will be available the first Business Day following the Securities Industry and Financial Markets Association (SIFMA) Class D monthly securities settlement date. You may also obtain a copy of the Pool Supplement and Giant Offering Circular Supplement by contacting Investor Inquiry at (800) or via at Investor_Inquiry@freddiemac.com. If information about the mortgages sold under the MultiLender Swap program is inaccurate or incomplete, you must immediately inform Freddie Mac and provide Freddie Mac with any corrections necessary. Neither you nor your affiliates may make any use of the Pool Supplement or Giant Offering Circular Supplement if any information contained therein is inaccurate or incomplete. For more information, refer to Guide Section Selling Mortgages for Securities Using Loan Selling Advisor Page 12 Chapter 10 December 2017

190 Chapter Additional Functions 11 Overview of Additional Functions This chapter covers additional functions of Loan Selling Advisor SM. Refer to the table below: Function Name Collateral Representation and Warranty Relief Change User Context Accessing the Exclusionary List Retrieve Historical Data Appraisal Data Integration from UCDP Where to Access Contract Details page Loan Pipeline page View Import Loan Results page Modify Loan page Main menu Settlements >> View Exclusionary List Data Sets >> Retrieve Historical Data Create Loan or Modify Loan page Collateral Representation and Warranty Relief Freddie Mac offers immediate relief from representations and warranties related to value, condition and marketability of the mortgaged premises. This offering uses Uniform Collateral Data Portal (UCDP ) and Loan Advisor Suite to provide feedback re: collateral rep and warrant eligibility as a loan moves through the origination and delivery process. At loan delivery Loan Selling Advisor confirms loan purchase eligibility and collateral rep and warranty relief eligibility. Refer to the Learning Center to learn more about Freddie Mac s offering and Loan Selling Advisor s Collateral Representation and Warranty Relief function. Change User Context If you operate under multiple Seller/Servicer numbers, you have the ability to log in using a different seller number or branch (if applicable) without completely logging out of the system. You must be approved to access the different seller numbers and/or branches for this functionality to work for you. Follow these steps to change user context: 1. From the main menu, hover your cursor over the Seller/Servicer Number until the drop-down page displays. Selling Mortgages for Securities Using Loan Selling Advisor

191 Additional Features in Loan Selling Advisor 2. Click Change User Context.The Login: System Context page displays. 3. Select the Unit Name and the Seller/Servicer Number from the drop-down menus. 4. Click Continue. The Login: Terms & Conditions page displays. 5. Click I Agree to continue. The Welcome to the Loan Selling Advisor page displays. The Freddie Mac Exclusionary List Selling Mortgages for Securities Using Loan Selling Advisor Page 2 Chapter 11 December 2017

192 Additional Features in Loan Selling Advisor Freddie Mac is committed to helping the mortgage industry fight fraud and, as part of our fraud prevention efforts, we have created the Freddie Mac Exclusionary List. The list, which is distributed monthly, contains the names and addresses of persons or entities that Freddie Mac, in its sole discretion, has excluded from doing business with Freddie Mac, either directly or indirectly. Seller/Servicers must represent and warrant that, as of the Note Date, no person or entity whose name is listed on the Exclusionary List was a Borrower on the Mortgage or played a role in the origination or sale of a Mortgage to Freddie Mac, or in the Servicing or quality control functions relating to a Mortgage or REO. For more information on the purposes for which Seller/Servicers may use the list, warranties, reporting obligations, and access to the list, refer to sections and of the Freddie Mac Single-Family Seller/Servicer Guide or call the Freddie Mac Fraud Hotline at (800) Use the following instructions to view the Exclusionary List: 1. From the main menu, select Settlements and then select View Exclusionary List. The View Exclusionary List Disclaimer page displays. 2. Review the Confidential and Privileged Information notice carefully and click View List to access the Exclusionary List. Retrieve Historical Data Loan Selling Advisor maintains fulfilled contract information for contracts and loans that funded on or after January 1, Each night, Loan Selling Advisor automatically stores data for fulfilled contracts and the loans associated with those contract. Selling Mortgages for Securities Using Loan Selling Advisor Page 3 Chapter 11 December 2017

193 Additional Features in Loan Selling Advisor User Roles and Exportable Data Reports To use the Retrieve Historical Data function, users must be assigned the appropriate user role(s). The following tables identify the user roles and the corresponding reports available to that user. Table 1: Contract Level Reports [X = available] User Role Funding Details Contract Confirmation/ Details Purchase Statement Closer/Shipper X X X X Settlement Statement Analyst X N/A X N/A Pair-off Confirmation Delayed Note Certification Inventory Manager N/A X N/A X Delayed Note Certification Officer N/A X N/A X Export Analyst N/A X N/A X Guarantor SMO N/A X N/A X SMO N/A X N/A X Table 2: Loan Level Reports for Seller or Servicing Buyer [X = available] User Role Funding Details Purchase Statement Form 1034E Form 996E Bill of Sale R&W Relief Details Delayed Note Certification Inventory Manager N/A N/A X N/A X N/A Delayed Note Certification Officer N/A N/A X N/A X N/A Closer / Shipper X X X X N/A X Settlement Statement Analyst X X N/A N/A N/A N/A Servicing Buyer Analyst X N/A N/A N/A N/A N/A Servicing Buyer Manager X N/A N/A N/A N/A N/A Retrieve and Export Historical Data Reports The Retrieve Historical Data function lets you retrieve reports at a contract-level or loan-level. Contract Level Reports When retrieving reports at a contract level, you must enter search criteria in the Search for fulfilled contract(s) section before you see a list of eligible reports. Follow these steps to retrieve Contract Level reports. 1. From the main menu, select Data Sets, and then select Retrieve Historical Data. The Retrieve Historical Data page displays. 2. Click Contract Level. 3. Enter at least one search criteria field to narrow your search. Selling Mortgages for Securities Using Loan Selling Advisor Page 4 Chapter 11 December 2017

194 Additional Features in Loan Selling Advisor Three tabs may display: Contract Level, Loan Level and Loan Level for Servicing Buyer. The third tab only displays if you are a Servicing Released Transferee Servicer. 4. Click View Contracts. A single contract or a list of contracts will display. 5. Select one contract and then select one or more reports to export. 6. Click Create Export File. 7. When prompted, select Open to access your report. If you requested multiple reports, you will receive them in a zip file. For a single data request, the report itself will display. Reports will be exported and may be viewed in either a.pdf or.html file format. Retrieve Loan Level Reports Unlike retrieving Contract Level Reports (as above), when you retrieve reports for Loan Level, you will select your desired reports from a list before you enter your search criteria. 1. From the main menu, select Data Sets, and then select Retrieve Historical Data. The Retrieve Historical Data page displays. 2. Click Loan Level. The page expands to display the Search for a funded loan section. 3. Enter a Seller Loan Identifier or Freddie Mac Loan Identifier. 4. Select the report(s) you want to export. 5. Click Create Export File. 6. When prompted, select Open The report will display in.pdf or.html format. Example Freddie Mac Funding Details Report: Selling Mortgages for Securities Using Loan Selling Advisor Page 5 Chapter 11 December 2017

195 Additional Features in Loan Selling Advisor If you requested multiple reports, you will receive them in.zip file format. Example of.zip file format for multiple reports: Retrieve Loan Level for Servicing Buyer Reports (Servicing Released Transferee Servicer only): 1. From the Retrieve Historical Data page, select the tab titled Loan Level for Servicing Buyer. The Search Funded Loan section displays. 2. Enter at least one search criteria field or narrow your search by completing additional search fields. 3. Select Funding Details report and then click Create Export File. The data report will open in a separate window. Appraisal Data Integration from UCDP The appraisal data delivered in Loan Selling Advisor will be compared with the appraisal data in the Uniform Collateral Data Portal (UCDP ). Loan Selling Advisor will return feedback messages if the delivered appraisal data data does not match the appraisal data in the UCDP. This comparison is performed based on the Appraisal Identifier delivered in Loan Selling Advisor. In UCDP, the Appraisal Identifier is known as the Document File Identifier or Doc File ID. The comparison between the appraisal data delivered in Loan Selling Advisor against the appraisal data in the Uniform Collateral Data Portal will occur when the loan is evaluated in Loan Selling Advisor. If there is a discrepancy, you will receive an edit message and must resolve any critical messages. If data needs to be modified in UCDP, you will need to resubmit the correct appraisal data in UCDP one Business Day prior to re-delivering the data in Loan Selling Advisor and re-evalute the loan. Click here to learn more about Appraisal Data Integration from UCDP to Loan Selling Advisor. Example of Modify Loan page with UCDP Appraisal Data Details section: Selling Mortgages for Securities Using Loan Selling Advisor Page 6 Chapter 11 December 2017

196 Additional Features in Loan Selling Advisor Selling Mortgages for Securities Using Loan Selling Advisor Page 7 Chapter 11 December 2017