Freddie Mac Single-Family Seller/Servicer Guide 4607.16 — CHOICERenovation® Mortgages combined with GreenCHOICE Mortgages® and credit for Credit Fees

Freddie Mac Single-Family Seller/Servicer Guide 4607.16 — CHOICERenovation® Mortgages combined with GreenCHOICE Mortgages® and credit for Credit Fees

Effective 2024-11-06 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Delivery requirements for CHOICERenovation® Mortgages ■ Special requirements when CHOICERenovation Mortgages are combined with GreenCHOICE Mortgages® (a) Delivery requirements for CHOICERenovation Mortgages See Section 6302.43 for special delivery requirements for CHOICERenovation Mortgages. (b) Special requirements when CHOICERenovation Mortgages are combined with GreenCHOICE Mortgages When CHOICERenovation Mortgage proceeds finance renovations completed after the Note Date to improve the energy and/or water efficiency, the health and safety and/or the resiliency and preventiveness of the Mortgaged Premises, the CHOICERenovation Mortgage may be eligible for the credit for Credit Fees for GreenCHOICE Mortgages (see Exhibit 19, Credit Fees, and Exhibit 19A, Credit Fee Cap Eligibility Criteria), provided the following requirements are met: ■ Except as stated below, the requirements in Section 4606.3(a) for GreenCHOICE Mortgages must be met for the subject Mortgage. This includes, but is not limited to: ❑ The cost of the financed renovations to improve the energy and/or water efficiency, the health and safety and/or the resiliency and preventiveness of the Mortgaged Premises must not exceed 15% of the “as completed” appraised value of the Mortgaged Premises. Note: In all cases, the maximum financed renovation costs must comply with the requirements in Section 4607.7, as applicable. ❑ Eligible improvements as described in Section 4606.1(b) with an aggregate cost of less than or equal to $6,500 may be completed without obtaining an energy report. If the aggregate cost should exceed $6,500, an energy report or alternative documentation in lieu of an energy report meeting the requirements in Section 4606.4 must be obtained and retained in the Mortgage file. ❑ The energy report exception stated in Section 4606.4(c), when proceeds are used to finance renewable energy sources, may apply so long as the appraiser documents the projected income by utilizing PV Value, Ei Value or a similar tool as referenced in Section 5601.4, and that the cost effectiveness has been demonstrated ■ All renovations, including renovations to improve the energy and/or water efficiency, the health and safety and/or the resiliency and preventiveness of the Mortgaged Premises, must be completed by the Completion Date ■ The renovation funds are deposited into a completion escrow account or Custodial Account for Renovation Funds (as described in Sections 4607.11 and 4607.12), as applicable, and ■ If the CHOICERenovation Mortgage is current, any funds remaining in the completion escrow account or Custodial Account for Renovation Funds, as applicable, after the costs of all renovations have been paid to the appropriate parties either must be used to reduce the UPB or may be used for additional renovations, as described in Section 4607.11(c) For CHOICERenovation Mortgages that are eligible for the credit for Credit Fees for GreenCHOICE Mortgages pursuant to this Section 4607.16(b), in addition to meeting the special delivery requirements for CHOICERenovation Mortgages in Section 6302.43, the Seller must deliver the ULDD Data Point(s) for GreenCHOICE Mortgages specified in Section 6302.23.

Source: Freddie Mac Single-Family Seller/Servicer Guide 4607.16 — CHOICERenovation® Mortgages combined with GreenCHOICE Mortgages® and credit for Credit Fees · source URL · snapshot 4c94f67729042dd6