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ULDD Requirements for Temporary Interest Rate Buydowns  

The table below provides a quick reference to the Loan Delivery fields that are applicable to Temporary Interest Rate Buydowns, as well as additional information to assist in delivering the fields.

The fields in the table below are located in the Special Products section of the Loan Detail page. These screens only appear when the imported Buydown Temporary Subsidy Indicator (Sort ID 228) is true or when the Buydown Temporary Subsidy has been set to "Yes" in Loan Delivery.

ULDD Requirements for Temporary Buydowns
Sort ID Field Name in Loan Delivery Details Drop-Down List Values
145 Buydown Contributor

Enter the source of the temporary buydown funds collected at closing.

Enter "Lender" for temporary buydowns funded with premium pricing.

Note: Buydown funds must be counted as interested party contributions in accordance with the Selling Guide.

 Borrower
Interested 3rd Party
Lender
147 Frequency

Enter the number of months between interest rate increases during the buydown period. For example, if the interest rate increases annually, enter “12”.

See the sample data below.

  
148 Duration 

Enter the total number of months for which the buydown is in effect. For example, a 3-2-1 buydown lasts for three years, enter "36".

See the sample data below.

  
149 Increase Rate

Enter the percentage by which the interest rate will increase at each frequency period. For example, if the interest rate increases 1%, enter “1.00”.

See the sample data below.

  
150 Initial Discount If the loan has not been modified prior to delivery, enter the difference between the Note Rate and the “bought down” rate that goes into effect as of closing. For example, if the Note Rate is 7.00% and the bought down rate is 4.00%, enter “3”.

If the loan has been modified prior to delivery and the pre-modification loan had a temporary buydown, but the post-modification loan does not have a temporary buydown, enter “No” for the Buydown Temporary Subsidy Indicator.

If the loan has been modified prior to delivery and the post-modification loan has a temporary buydown, enter the difference between the Modified Interest Rate and the “bought down” rate that goes into effect as of the modification date. For example, if the Modified Interest Rate is 7.00% and the bought down rate is 4.00%, enter “3”.

See the sample data below.

  
228 Buydown Temporary Subsidy Indicate if there is a temporary buydown.   See the sample data below. Yes
No

For reference, the following SORT ID values correspond with the Requirements table above:

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