Loan Prospector Updated to Support Federal Housing Administration Risk-Based Premiums Initiative
July 3, 2008
On July 13, 2008, we updated Loan Prospector® to enable you to submit loans under the Federal Housing Administration's (FHA) Risk-Based Premiums Initiative. FHA's risk-based premiums became effective with the release of version 2.0 of the FHA TOTAL Mortgage Scorecard on July 12.
To ensure FHA loans submitted through Loan Prospector to the FHA TOTAL Mortgage Scorecard for assessment align with FHA's new risk-based premium requirements, we made the following updates to Loan Prospector:
- Provided the FHA TOTAL Mortgage Scorecard with additional data fields
- Returned new and updated existing feedback messages on the FHA TOTAL Mortgage Scorecard Full Feedback Certificate
- Extended the field length of several fields in Loan Prospector to match the FHA TOTAL Mortgage Scorecard field length requirements
For more details on FHA's risk-based premiums, please refer to the U.S. Department of Housing and Urban Development's (HUD) June 11 Mortgagee Letter 2008-16 [DOC].
Submissions and Resubmissions to the FHA TOTAL Mortgage Scorecard
Effective July 13, the FHA TOTAL Mortgage Scorecard determines which version of the scorecard the loan is sent to for assessment. This determination is based on the FHA Case Number if provided, or if a FHA Case Number is not provided, on the version of the FHA TOTAL Mortgage Scorecard that was used for any previous submissions.
Submissions with a FHA Case Number
- Initial submissions and resubmissions of FHA loans with FHA Case Numbers assigned before July 14 were sent to version 1.2 of the FHA TOTAL Mortgage Scorecard.
- Initial submissions and resubmissions of FHA loans with FHA Case Numbers assigned on or after July 14 will be sent to version 2.0 of the FHA TOTAL Mortgage Scorecard.
Submissions without a FHA Case Number
Pipeline loans that do not include a FHA Case Number are sent to version 1.2 or 2.0 of the FHA TOTAL Mortgage Scorecard, depending on the date and version of the initial submission. Once a FHA Case Number is assigned to the loan, the loan will be sent to the appropriate scorecard version based on the issue date of the FHA Case Number. On or after July 13, initial submissions will be sent to version 2.0.
Please note the FHA Case Number must be entered on or before the last submission or FHA will not accept the loan.
Reference the following table for submission and resubmission scenarios to the FHA TOTAL Mortgage Scorecard:
| Initial Submission Date |
FHA Case Number Date of Issuance |
Version Received |
Resubmission Date |
FHA Case Number Date of Issuance |
Version Received |
| 7/12/2008 |
Not provided |
1.2 |
7/14/2008 |
Not provided |
1.2 |
| 7/12/2008 |
Not provided |
1.2 |
7/14/2008 |
7/12/2008 |
1.2 |
| 7/12/2008 |
Not provided |
1.2 |
7/14/2008 |
7/14/2008 |
2.0 |
| 7/12/2008 |
7/12/2008 |
1.2 |
7/14/2008 |
7/12/2008 |
1.2 |
| 7/12/2008 |
7/12/2008 |
1.2 |
7/14/2008 |
7/14/2008 |
2.0 |
| 7/14/2008 |
Not provided |
2.0 |
7/16/2008 |
7/12/2008 |
1.2 |
| 7/14/2008 |
Not provided |
2.0 |
7/16/2008 |
7/14/2008 |
2.0 |
| 7/14/2008 |
7/12/2008 |
1.2 |
7/16/2008 |
7/12/2008 |
1.2 |
| 7/14/2008 |
7/14/2008 |
2.0 |
7/16/2008 |
7/14/2008 |
2.0 |
Additional Data Fields Provided to the FHA TOTAL Mortgage Scorecard
Version 2.0 of the FHA TOTAL Mortgage Scorecard requires all new FHA loan submissions to include additional data elements needed to assess risk-based premiums. On July 13, we updated Loan Prospector to provide the FHA TOTAL Mortgage Scorecard with the following required data fields:
- Down Payment
- Base Mortgage Amount
- Base LTV
- First-Time Homebuyer
- Counsel Type
- Refinance Type
You will not need to enter any additional data in Loan Prospector based on these changes. The data sent to the FHA TOTAL Mortgage Scorecard will be based on the data currently collected in Loan Prospector or on a default value and will not require an update to your loan origination system (LOS) at this time.
New Feedback Messages Provide Details on FHA's Risk-Based Premiums
We also updated Loan Prospector to provide several new feedback messages, as well as revised several existing feedback messages on the FHA TOTAL Mortgage Scorecard Full Feedback Certificate, to help you estimate the total risk-based premium that applies to a FHA loan assessed through Loan Prospector. Based on your submission, the following new feedback messages may apply and appear in the Loan Processing Information section of the Feedback Certificate:
| Category |
Message Code |
Feedback Message |
Purpose |
| LPN |
VF |
The UFMIP for this loan is based on the first time borrower NOT having completed HUD approved pre-purchase counseling. The FHA Upfront Mortgage Insurance Premium (UFMIP) Factor cannot exceed 2.00% for first time homebuyers who completed HUD approved pre-purchase housing counseling. |
Loan Prospector will send a default value of “Not Counseled” for the Counseling Type to the FHA TOTAL Mortgage Scorecard and return a feedback message explaining this on the Loan Prospector feedback certificate. |
| LPN |
VH |
If the refinanced conventional ARM mortgage to FHA mortgage is delinquent, the Upfront Mortgage Insurance Premium (UFMIP) is 2.25%. The annual premium is .55% when LTV > 95%; if LTV ratio <= 95%, the annual premium is .50%. |
For borrowers refinancing delinquent non-FHA ARMs, the premium is 2.25 percent for the UFMIP and 0.55 percent for the annual premium when the LTV ratio is greater than 95 percent; if the LTV ratio is equal to or less than 95 percent, the premium is 2.25 percent for the UFMIP and the annual premium is 0.50 percent. |
| LPN |
VJ |
The FHA Upfront Mortgage Insurance Premium (UFMIP) Factor is (x.xx)%. |
This is an estimate of your up front mortgage insurance premium for the loan submitted. |
| LPN |
VK |
The FHA Annual Premium Factor is (x.xx)%. |
This is an estimate of your annual mortgage insurance premium for the loan submitted. |
| RSK |
HK |
Ineligible for FHA w/values sent–See Upfront Premiums Chart. |
This indicates that the loan is ineligible for funding based on the loan information submitted. Refer to the Upfront Premiums chart to determine if the loan's LTV and/or FICO are listed on the chart. If the loan's LTV and/or Decision Credit Score (FICO) are not listed on the chart, you will need to adjust the loan submission to align with the Upfront Premium chart requirements in order to successfully submit the loan. |
| INV |
CJ |
Down Payment amount must be > $0. |
This message indicates that the Down Payment field is required. If you receive this message, you will need to resubmit the loan and include the down payment amount. |
We also added the following data transmission error messages:
| Category |
Message Code |
Feedback Message |
Purpose |
| DTE |
JA |
Down Payment amount is not valid. |
This message indicates that there has been an error in the submission of the loan to the FHA TOTAL Mortgage Scorecard. If you receive this message, please contact Loan Prospector Customer Service. |
| DTE |
JB |
First Time Homebuyer must be "Y" or "N". |
This message indicates that there has been an error in the submission of the loan to the FHA TOTAL Mortgage Scorecard. If you receive this message, please contact Loan Prospector Customer Service. |
| DTE |
JC |
Counsel Type is not valid. |
This message indicates that there has been an error in the submission of the loan to the FHA TOTAL Mortgage Scorecard. If you receive this message, please contact Loan Prospector Customer Service. |
| DTE |
JD |
Base Mortgage amount is not valid |
This message indicates that there has been an error in the submission of the loan to the FHA TOTAL Mortgage Scorecard. If you receive this message, please contact Loan Prospector Customer Service. |
| DTE |
JE |
Base LTV is not valid |
This message indicates that there has been an error in the submission of the loan to the FHA TOTAL Mortgage Scorecard. If you receive this message, please contact Loan Prospector Customer Service. |
Please note, while we are providing you with these data transmission error messages, at this time, you will be unable to conduct test scenarios that will display these messages.
Important Note: The values for Counsel Type and Refinance Type are defaulted because they are not MISMO approved and are not available to allow you to enter the actual value. As a result, with these default values, you may have a manual overlay that will have to be done based on the actual values of counsel type and refinance type. Refer to the FHA risk-based premium chart in HUD's June 11 Mortgagee Letter 2008-16 [DOC].
Extending Field Lengths
The size limitation in certain fields that resulted in an “Invalid” processing status and error messages for values exceeding $1,000,000.00 was addressed with our July 13 updates. To address this issue, we increased the length of the following fields to align with the FHA TOTAL Mortgage Scorecard field length requirements:
- Appraised Value of Property
- Loan Amount
- Sales/Purchase Price
- Unpaid Principal Balance
- Monthly Payment/Principal, Interest, Taxes, and Insurance (PITI)
- Underwriting Principal and Interest
To align with the new field length requirements, we also updated the following error messages:
| Category |
Message Code |
Current Feedback Message |
Updated Feedback Message |
| INV |
AE |
Value of Property must be 0 or between $9,000 and $1,000,000. |
Value of Property must be 0 or between $9,000 and $9,999,999 |
| INV |
AF |
Loan Amount (including MIP) must be >$1,000 and <=$9,999,999. |
Loan Amount (including MIP) must be >$0 and <=$9,999,999. |
| INV |
AH |
Gross Purchase Price must be between $9,000 and $1,000,000. |
Gross Purchase Price must be between $9,000 and $9,999,999. |
| INV |
AY |
Unpaid Principal Balance must be <=$999,999. |
Unpaid Principal Balance must be <=$9,999,999. |
| INV |
BC |
PITI must be greater than $0 and less than $10,000. |
PITI must be greater than $0 and less than $15,000. |
| DTE |
GF |
Underwriting P&I must be greater than $0 |
Underwriting P&I must be between $0 and $15,000. |
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You may resubmit pipeline loans that previously received any of the above error messages by using the original Loan Prospector AUS Key Number.
For More Information
- General inquiries about Loan Prospector functionality, call Loan Prospector Customer Service:
- Freddie Mac Sellers: (800)-FREDDIE
- Third-Party Originators: (888)-LP ON WEB
- Inquiries on FHA's Risk-Based Pricing Initiative and related changes:
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