Recent Loan Prospector Enhancements to Reflect Recent Single-Family Seller/Servicer Guide Changes
[May 1, 2008]
On May 18, we enhanced Loan Prospector® with new and updated feedback messages that reflect recent postsettlement delivery fee rate and credit requirement changes announced over the past few months. We also added a new feedback message to indicate the Area Median Income for the property address submitted on all Home Possible® Mortgage submissions. These new and updated feedback messages provide more detail to help you assess your loans through Loan Prospector. These feedback messages are effective for all Loan Prospector submissions, including new submissions and pipeline loans, on May 18.
In addition, as announced in our February 21 Single-Family Seller/Servicer Guide (Guide) Bulletin [PDF], we removed the Condo Class field from Loan Prospector and will no longer require the input of this information.
New and Updated Feedback Messages
In recent months, Freddie Mac has issued several Guide Bulletins that have expanded our use of risk-based pricing and made changes to delivery fees for certain mortgages. Additionally, we have modified many of our credit requirements.
To help you identify the impacts of these changes at origination, we enhanced Loan Prospector with new and updated feedback messages that align with these recent changes. As a reminder, these feedback messages are only for guidance and the final delivery fees and credit requirements will be based on the final loan data delivered to Freddie Mac.
Based on customer requests, we added a new feedback message that provides the Area Median Income for the property address submitted on all Home Possible Mortgage submissions. If Loan Prospector cannot identify the address, it will provide the Area Median Income using a census tract based on the zip code provided.
These new and updated feedback messages are effective for all Loan Prospector submissions, including new submissions and pipeline loans, as of May 18. Here is a complete list of the new and updated feedback messages, as well as the date of the corresponding Guide Bulletin that summarizes the previously announced changes:
| Message Code |
Feedback Message |
Purpose |
Corresponding Guide Bulletin |
Effective Date |
| New Feedback Messages |
| Delivery Fee and Credit Requirement Messages |
| LPR V8 |
This loan is subject to a Market Condition delivery fee. |
To indicate if a submission is subject to the new Market Condition delivery fee. |
December 11, 2007 [PDF] |
Effective for Freddie Mac settlements on or after March 9, 2008. |
| LPR MG |
This secondary financing structure may be subject to a delivery fee. |
To indicate if a submission is subject to the changes made to our Secondary Financing fee structure. |
December 21, 2007 [PDF] |
Effective for Freddie Mac settlements on or after May 1, 2008. |
| LPR V7 |
This loan may be subject to an Indicator Score/Loan-to-Value ratio delivery fee. |
To indicate if a submission is subject to the new Indicator Score/LTV delivery fee rate structure. This message will be returned based on the Indicator Score/LTV delivery fee structure. |
November 15, 2007 [PDF] and February 21, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
| LPR J7 |
This loan may be subject to an Indicator Score/Loan-To-Value Ratio delivery credit. |
To indicate if a submission is subject to new Indicator Score/LTV delivery fee rate credits. |
February 21, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
| PUR 87 |
Minimum Indicator Score not met for Home Possible loan. |
To address changes made to Freddie Mac requirements discontinuing the purchase of most mortgages with LTV/TLTV/HTLTV ratios greater than 97 percent. |
February 21, 2008 [PDF] |
Effective for Freddie Mac settlements on and after June 1, 2008. |
| PUR 85 |
HTLTV exceeds Initial Interest product limits. |
To address changes made to Freddie Mac requirements discontinuing the purchase of most mortgages with LTV/TLTV/HTLTV ratios greater than 97 percent. |
February 21, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
| INV 2S |
FM100 Offering Identifier 220 is not a valid code. |
To address changes made to Freddie Mac requirements discontinuing the purchase of Freddie Mac 100 Mortgages. |
February 21, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
| Area Median Income Message |
| LPN K9 |
[AMI Amount] is the Area Median Income for the address submitted.* |
To indicate the Area Median Income for the property address submitted on all Home Possible loan submissions. |
N/A |
N/A |
| Updated Feedback Messages (Existing messages updated with new language) |
| Credit Requirement Messages |
WEB KX
Documentation Checklist |
If all Borrower(s) are First-Time Homebuyers, at least one qualifying Borrower must participate in a homeownership education program before the Note Date. Retain Homeownership Education Certificate or comparable document in the mortgage file.* |
To address changes made to Freddie Mac requirements requiring Homeowner Education, for Home Possible Mortgages, on purchase loans when all borrowers are first-time homebuyers. |
February 21, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
DOC JX
Feedback Certificate |
If all Borrower(s) are First-Time Homebuyers, at least one qualifying Borrower must participate in a homeownership education program before the Note Date. Retain Homeownership Education Certificate or comparable document in the mortgage file.* |
To address changes made to Freddie Mac requirements requiring Homeowner Education, for Home Possible Mortgages, on purchase loans when all borrowers are first-time homebuyers. |
February 21, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
| Updated Feedback Messages (Updates to when existing feedback messages are returned) |
| Delivery Fee Messages |
| LPR MF |
This loan is for a 2-unit property and is subject to a Number of Units fee. |
To indicate if a 2-unit submission is subject to new LTV ratio structure delivery fee rate. |
March 13, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
| LPR HK |
This loan is for a 3- to 4-unit property and is subject to a Number of Units fee. |
To indicate if a 3- to 4-unit submission is subject to new LTV ratio structure delivery fee rate. |
March 13, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
| LPR ME |
This loan is subject to a cash-out refinance fee. |
To indicate if a submission is subject to the changes made to our cash-out refinance fee structure. |
March 13, 2008 [PDF] |
Effective for Freddie Mac settlements on or after June 1, 2008. |
*These feedback messages are available in Loan Prospector Outreach.
Update to Feedback Message Returned for Home Possible Three Percent Cash Mortgage Submissions
As announced in our February 21 Guide Bulletin [PDF], beginning June 1, we will assess Home Possible Mortgage delivery fees for our Home Possible and Home Possible Neighborhood Solution Three Percent Cash Mortgages, which were previously excluded from Home Possible delivery fee assessments. As a result, the following feedback message will no longer be returned:
| Message Code |
Feedback Message |
| LPR 9M |
The Home Possible delivery fee is waived if delivered as a Home Possible 3% Cash or a Home Possible Neighborhood Solution 3% Cash. |
| |
Instead, beginning May 18, depending on the borrower's income these mortgages will receive one of the following existing feedback messages:
| Message Code |
Feedback Message |
| LPR JG |
This loan is subject to a Home Possible delivery fee. |
| |
or
| Message Code |
Feedback Message |
| LPR K8 |
The income used to qualify the borrower for this mortgage is at or below 80% of the Area Median Income and may be eligible for a reduced Home Possible delivery fee. |
|
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Removal of Condo Class Field
In our December 21 Guide Bulletin [PDF], we announced changes to our requirements for the sale of Condominium Unit Mortgages delivered to Freddie Mac on or after March 1, 2008. With these changes, we are helping refine your project review process, and promoting condominium project operations that help protect homeownership.
Beginning May 18, we removed the Condo Class field from the Loan Prospector browser access method and will no longer require the input of this information in the Loan Prospector system-to-system access method.
For more information
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