Representation and Warranty Framework FAQ

The mortgage would be eligible for relief upon the date of expiration of the credit enhancement, regardless of whether the acceptable payment history requirements are satisfied. In this example, the relief would be granted at the end of the five-year period.

MI is not one of the items covered under Guide Section 1301.11 as eligible for representation and warranty relief. As a result, if the MI is rescinded, the mortgage could be subject to a repurchase request or if certain requirements are met, Sellers may be eligible for MI stand-in as an alternative to repurchase.

It may not be eligible for relief based on an acceptable payment history, but it could be eligible based on a satisfactory conclusion of a Freddie Mac QC review.

Yes, however, the loan may be subject to a repurchase request for a breach of one of the life-of-loan representations and warranties, as outlined in Guide Section 1301.11(c).

Yes, however, the loan may be subject to a repurchase request for a breach of one of the life-of-loan representations and warranties, as outlined in Guide Section 1301.11(c).

QC timelines and enforcement processes in support of the representation and warranty framework were announced in Guide Bulletin 2012-22 and outlined in our October 19, 2012, Industry Letter. To address alleged loan-level breaches of selling representations or warranties that remain unresolved after existing appeals and escalation processes have been exhausted, you can use the updated Independent Dispute Resolution (IDR) process, as announced in Guide Bulletin 2016-14.

You will need to reach out to your mortgage insurer to determine what their process is.

Under the selling representation and warranty framework, MI stand-in is an available repurchase alternative only when primary MI is rescinded.

Please contact your Freddie Mac Remedy Underwriter to determine if the mortgage(s) are eligible for an alternative remedy.