Specifies the type of mortgage counseling or education program attended by one or more of the borrowers.
Valid Values:
Government Agency
HUD Approved Counseling Agency
Lender Trained Counseling
No Borrower Counseling
Other - Borrower Did Not Participate
Other - Mortgage Insurance Company
Other - Nonprofit Organization
When to Use:
Required when the mortgage is an affordable loan product, and for:
a) all individual borrowers, and
b) the Underwritten Settlor, when the borrower is a living trust.
Note: complete the Homeownership Counseling Information section of Form 1103, Supplemental Consumer Information, when homeownership education is required. Refer to Guide Section 5103.6.
How to Use:
For any transaction when the credit reputation for all Borrowers is established using only Noncredit Payment References or as required in the Seller’s terms of business.
Enter the applicable value as required for Home Possible® Mortgages, HomeOne®SM Mortgages, HeritageOne® Mortgages, loans where all Borrowers have Noncredit Payment References, or as required in Seller's negotiated term.
For Home Possible® Mortgages and HeritageOne® Mortgages, when required, at least one occupying Borrower on the mortgage must complete homeownership education prior to loan closing.
For purchase transaction Home Possible® Mortgages, when all occupying borrowers are First-Time Homebuyers.
For purchase transaction Freddie Mac HomeOne® Mortgages when all Borrowers are First-time Homebuyers
Select "Other" if the Borrower did not participate in required counseling, or if the counseling was provided by a mortgage insurance company or a nonprofit organization such as a non-profit Community Development Financial Institution (CDFI).
Select "Government Agency" if the Borrower completed Freddie Mac's online CreditSmart® Homebuyer U Tutorial, OR if the homeownership education was provided by a Housing Finance Agency (HFA), OR if the homeownership education was provided by a for-profit Community Development Financial Institution (CDFI).
Select “HUD Approved Counseling Agency” if the Borrower completed homeownership education that was provided by a HUD-approved nonprofit counseling agency.
Do not deliver “Lender Trained Counseling”.
Select
“No Borrower Counseling” if the Borrower is not required to participate in homeownership education, such as for a refinance transaction.
