Loan Coverage Advisor FAQ

Loan Coverage Advisor is a flexible, web-based application that calculates and tracks the representation and warranty relief date for every loan sold to Freddie Mac, based on the requirements under the selling representation and warranty framework.

The selling representation and warranty framework, introduced in 2012 and enhanced in 2014, helps address Sellers’ concerns around loan repurchase risk.

Under the framework, Freddie Mac will not exercise its remedies, including the issuance of a repurchase request, for breaches of certain selling representations and warranties if a mortgage meets certain eligibility criteria.

Visit the Loan Coverage Advisor web page, click “Get Started” and follow the path for lenders, or ask your Administrator for access.

No. It’s free to sign up for and use Loan Coverage Advisor.

You can use the basic and advanced search tools to see loan level and event history records across all of your seller/servicer numbers. You can also use the Selling R&W Relief Date and Summary Relief Reports for both a detailed and summarized view of rep and warranty relief information across your entire portfolio.

Yes. You can perform searches using the following loan identifiers:

• Freddie Mac loan number
• Seller/Servicer number
• Seller loan number
• Servicer loan number
• Master Commitment number

Yes. You can do all sorts of quick searches with Loan Coverage Advisor, including determining how and when your loans obtained rep and warranty relief. Using the Advanced Search function of the tool and searching by event type will yield the results for satisfactory quality control reviews.

You can view different representation and warranties relief information for loans. Data available includes:

• R&W Relief Indicator
• R&W Relief Date
• 3C’s (Credit, Capacity and Collateral) and Relief at Funding Types (example: ACE*, AIM**)
• Selling R&W Relief Reason for relieved loans
• Selling R&W Life of Loan reason for loans not eligible for relief
• Selling and Servicing Obligor associated with the loan

* ACE - automated collateral evaluation

You can view the eligibility of an Alternative Payment Plan, also known as a Disaster-Related Forbearance plan.

Loan Coverage Advisor maintains critical loan level information pertaining to events affecting representation and warranty obligations on every loan you sell to us. You can also quickly look up loan level details on transfer of servicing transactions, mortgage insurance (MI), other credit enhancements and more. The tool also offers detailed search capabilities for credit enhancements and other events like post-fund data corrections, delinquencies and other post-fund activity that may affect your rep and warranty obligations.

The following CE data is available in Loan Coverage Advisor:

• CE Type
• CE Status
• CE Reason
• Recovery Source
• Enforcement Trigger
• Days Delinquent Trigger
• Enforcement Action
• Coverage Added & Effective Date
• Planned & Actual Termination Date
• CE Coverage
• MI Company, Policy Number and Certificate Number

The reports offered within Loan Coverage Advisor include: 

• Relief Date Report – view loans that have met the requirements for relief under the representation and warranty framework.
• Newly Funded Loans – displays the rep and warranty relief date of recently funded loans in your portfolio.
• Projected Relief Date Trend Report – tracks month-to-month changes to your rep and warranty relief data, revealing trends across your portfolio to help you gauge confidence around expected relief dates.
• Relief Recon Report – Identifies loans that have been granted retroactive relief, had relief revoked, or relief date changes in the reporting period.
• Obligation Recon Report – Identifies loans that have either been transferred to or from the Seller/Servicer’s portfolio in the reporting period. 
• Relief Summary Report – Portfolio level view of relief.

Yes. Multiple training resources and opportunities are available. Please visit Freddie Mac Learning for more information, including on-demand self-study tutorials.

For application-related questions, reach out to the Customer Support Contact Center (800-FREDDIE). For any specific representation and warranty-related questions, send an email to: [email protected].

A forbearance plan provided to an eligible borrower impacted by an eligible disaster that allows the borrower to pay a reduced or no monthly payment for a temporary period. The forbearance plan results in the borrower becoming delinquent and increasingly delinquent for the term of the plan (refer to Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-28).

Those borrowers whose properties or place of employment are in an “eligible disaster area” – an area subject to a “Major Disaster Declaration” on or after August 25, 2017 with “Individual Assistance – Dollars Approved” made available by FEMA (refer to the FEMA website).

All Servicers who service loans for borrowers whose properties or place of employment are in eligible disaster areas.

Loans funded under the Selling R&W Framework funded after July 2014.