New Freddie Mac UCDP hard stops effective June 30th

Written by on June 15, 2015

Back in April, Freddie Mac announced changes to their UCDP feedback messages effective June 30th. Click here for the full article. An upcoming update for TOTAL and WinTOTAL will include the below changes to E&O messages to address the new requirements.

Three existing warnings upgraded to hard stops: The following warnings, which have been part of our E&O since January 26th when Fannie Mae introduced them, will be upgraded to hard stops to meet Freddie Mac's new requirements.

  • FRE1086 – The signature date is prior to the Effective Date of the report. (Will now compare effective date to the signature date as opposed to today’s date.)
  • FRE1087 – The appraiser’s name is missing.
  • FRE1040 – The report is missing a Legal Description.

Existing hard stop messages: Also in their announcement, Freddie Mac is adding new warnings to indicate that the appraisal may not meet their requirements. However, Fannie Mae has already deemed these errors as hard stops. In order to meet the most stringent GSE requirements, these warnings will remain as hard stops. The messages and their Freddie Mac codes are:

  • FRE1093 – The appraisal report indicates that the zoning is Legal Nonconforming and that rebuilding to current density is not permitted. (This affects the Individual Condominium Unit Appraisal Report, when Zoning Compliance is "Legal Nonconforming" and the answer to, "Do the zoning regulations permit rebuilding to current density?" is No.)
  • FRE1094 – The appraisal report indicates that the contract of sale was not analyzed by the appraiser.
  • FRE1095 – The appraisal report indicates that the present use of the subject property as improved (or as proposed) does not represent the highest and best use as improved.

Lastly, we don’t have access to the data that Freddie Mac is checking against to validate if the subject is a condominium hotel for FRE1092. The same is true for Fannie Mae’s equivalent warning, FNM0101. For this reason, these warnings are not flagged by our E&O PowerView.

As always, these updates are free as one of the many benefits of your membership.

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