SYMPTOM
When you calculate an Interest Only loan in Point, it does not transfer as an Interest Only loan when it is submitted to Freddie Mac.
CAUSE
Freddie Mac identifies Interest Only scenarios through the Offering Identifier field on their Website. In Point, the Offering Identifier field is blank.
RESOLUTION
Choose an Offering Identifier in Point
- Open Point.
- From the Menu bar, select Interfaces > Freddie Mac > Addendum.
- Scroll down to the HELOC section.
- From the Offering Identifier dropdown list, choose the applicable item and resubmit the loan to LP.
Initial Interest: Initial Interest Mortgages are those that require:
- Interest only payments for a specified period of time beginning with the first monthly payment after the Note Date.
- Principal and interest payments on a fully amortizing basis for the remainder of the Mortgage term.
They include:
- Initial Interest 10/20 Fixed
- Initial Interest 15/15 Fixed
- Initial Interest ARM (3/1, 5/1, 7/1, and 10/1)
- Initial Interest ARM - 10 Year IO