RC_LP_U_304.3 Freddie Mac Manually Underwritten Loans

Freddie Mac Manually Underwritten Loans presents underwriting requirements and risk evaluation principles for manually underwritten mortgages that will be sold to Freddie Mac.

Participants will examine standard Freddie Mac guidelines for manually underwriting:

• Loan applications never submitted to Loan Product Advisor (LPA)
• Loan applications submitted to LPA and receiving an LPA recommendation of Caution, but not eligible as an A-minus mortgage
• Loan applications submitted to LPA receiving an evaluation status of invalid, ineligible, or incomplete

This course begins with an overview of Freddie Mac's risk assessment philosophy. It then addresses evaluation of the "three Cs" -- credit, capacity, and collateral. Next, the course reviews Freddie Mac's guidelines for evaluating layered risk and multiple borrowers. Toward the end of the course, loan recommendation and loan documentation requirements are described. The course ends with Freddie Mac manual underwriting case studies.

Through loan scenarios and case study work, participants will further enhance their underwriting skills. While this lesson specifically presents Freddie Mac's manual underwriting process, the philosophies introduced apply to general manual underwriting practices.

This is a single-family/residential course.