Freddie Mac provides proprietary property valuation information through multiple tools, including Loan Product Advisor®, Uniform Collateral Data Portal® (UCDP®), BPOdirect®, the Automated Valuation Model (AVM) Collateral Values report, and other third-party distribution methods. These tools return an estimate of property value generated by our proprietary automated valuation system, Home Value Explorer® (HVE®). By providing HVE data and other loan-level data elements, our tools are designed to help Seller/Servicers assess their risk during the loan manufacturing process, solicit and originate Freddie Mac Relief Refinance Mortgages℠, facilitate the delivery of property valuation information at the time of purchase, and evaluate eligibility for loan modifications.

On this page you’ll find:

  • Language that should accompany Freddie Mac’s proprietary property valuation information when providing this information to loan applicants or borrowers.
  • Instructions you should follow when you share our proprietary valuation information obtained through certain tools with loan applicants and borrowers.

The language and instructions are designed to help you in your disclosure efforts to meet applicable industry regulations and to make our valuation data easier for loan applicants and borrowers to understand.

Loan Product Advisor

Loan Product Advisor may return HVE data on the feedback certificate, which may be shared with a loan applicant or borrower provided that the certificate includes a disclaimer and supporting text. Below are options for restricting property valuation messaging in Loan Product Advisor and also guidance you can use when sharing HVE information with applicants and borrowers.

  • Options Available for Restricting Receipt of Property Valuation Messaging in Loan Product Advisor.
    • Continue to receive all applicable HVE results, including the HVE point value estimate, as you do now.
    • Restrict the HVE point value estimate and related valuation information messages on all Loan Product Advisor submissions.
    • Restrict the HVE point value estimate and related valuation information messages on all Loan Product Advisor submissions.

Note: Even if you request to restrict certain applicable HVE results, you will continue to receive Loan Processing Information message Y6 regarding reviewing estimated value for accuracy. This message can be helpful in more easily identifying potentially inflated appraisal values. This message does not contain the HVE point value estimate. To opt out, please complete: Request for Change Form in the sidebar. If you have questions, please contact your Freddie Mac representative or the Customer Support Contact Center at 800-FREDDIE and select Option 1 and then Option 2 for Loan Product Advisor.

Guidance for Sharing HVE Information with Applicants and Borrowers

  • For Loan Product Advisor users. Use the Freddie Mac Property Valuation Disclosure Form for disclosing HVE valuation data to borrowers or loan applicants. If you choose to provide the entire Loan Prospector Feedback Certificate to disclose HVE valuation data, you should include the disclaimer and supporting text located in the sidebar.
  • For system-to-system users who are using Freddie Mac style sheet instructions. Freddie Mac is providing technical instructions that will allow you to update your systems and isolate the HVE data for use when sharing this information with loan applicants and borrowers. If you have any questions and would like to discuss this in more detail, please contact your Loan Product Advisor Technology Relationship Manager, software partner representative or verification analyst.
  • For users of the HVE Tool for Relief Refinance Mortgages. When originating Relief Refinance Mortgages, you may use the HVE data obtained from the HVE tool which you can access through Loan Product Advisor.

Uniform Collateral Data Portal

To learn more about HVE valuation information in UCDP, please visit our UCDP Q&A on Freddie Mac Proprietary Appraisal Messaging (link in sidebar).

BPOdirect

Servicers may check for an HVE point of value estimate (also known as "Auto Value") in BPOdirect or must order a broker price opinion (BPO), if required, through BPOdirect when determining the value of a property.

AVM Collateral Values Report

The AVM Collateral Values report may be used to obtain a property value for Home Affordable Modification Program® (HAMP®) modifications, Standard Modifications, and Streamlined Modifications. The report contains a loan-level list of all 30, 60, 90+ delinquent or foreclosed loans in a Servicer's portfolio and the respective current AVM values, if available.

Servicers can access the AVM report through the Manager Series reports in Servicer Performance Profile. The report is available through the Home Affordable Modification Program web page under "Servicing Resources." Servicers must rely on the AVM report publication date to ensure its compliance with the 90-day property valuation requirement for each mortgage under consideration for a modification.

As a reminder, if an AVM value is available in the AVM Collateral Values report, the Servicer must use that value when evaluating a borrower for a loan modification.

Consumer Web page

If your loan applicants and borrowers have questions about Freddie Mac's HVE information, you may direct them to our Freddie Mac Home Valuation web page (link in sidebar). The page includes frequently asked questions and a glossary of terms, providing consumer-focused information about the valuation data obtained through Freddie Mac.

Announcements

  • November 26, 2013 Single-Family News Center article (link in sidebar)

Resources