Elimination of Accept Plus Documentation Level in Loan Prospector®Accept Plus was removed from Loan Prospector on December 7, 2008
Updated November 13, 2008. Please note the settlement date has changed. These loans must have Freddie Mac settlement dates before March 1, 2009, not January 30, 2009 as previously announced.
In an October 17, 2008, e-mail to all Freddie Mac Sellers, we previewed new credit requirement changes that we finalized in a November Single-Family Seller/Servicer Guide (Guide) Bulletin. These changes strengthen underwriting standards for borrower eligibility and provide additional safeguards against layered risk to support sustainable homeownership opportunities.
In particular, these changes include eliminating purchases of all mortgages originated with stated income and/or stated assets, including borrower-selected programs, lender-branded and marketed programs, and system-selected programs such as Loan Prospector® Accept Plus.
As a result, on December 7, 2008, we eliminated the Accept Plus Documentation Level in Loan Prospector. For all submissions and resubmissions after December 7, Loan Prospector no longer returns an Accept Plus Documentation Level.
Managing your pipeline loans
To help you manage your pipeline loans, please keep in mind the following:
- If you resubmit a loan after December 7 that received an Accept Plus Documentation Level prior to December 7, you will no longer receive an Accept Plus Documentation Level on resubmission.
- Instead, based on the characteristics of the loan, the Documentation Level will change to Streamlined Accept or Standard. In addition, you may experience a change in Risk Class.
- You must underwrite the loan according to the Documentation Level on the most recent Loan Prospector Feedback Certificate, which may require you to obtain additional documentation from your borrower.
To assist you in managing your pipeline loans, Freddie Mac will continue to purchase Loan Prospector mortgages that receive an Accept Plus Documentation Level on the most recent Loan Prospector Feedback Certificate. These loans must have Freddie Mac settlement dates on or before March 1, 2009.
Third-party originators, please contact your wholesale lender to determine how they plan to address this change.