Loan Prospector® January 11 ReleaseDecember 22, 2008
On January 11, to support credit requirement changes announced in our November 24 Single-Family Seller/Servicer Guide (Guide) Bulletin, Loan Prospector® was updated to:
- Reflect the minimum Indicator Score requirement of 620 for most mortgages, except for Loan Prospector A-minus Mortgages and certain other mortgages specified in the November 24 Guide Bulletin. Mortgages submitted to Loan Prospector prior to January 11, 2009, even if they are resubmitted after this date, will not be assessed based on this update.
After January 11, you will not need to verify the Indicator Score for Loan Prospector Accept Mortgages.
We updated Loan Prospector with the following new feedback message to address this new requirement:
Message Code
Feedback Message
Purpose
RSK 90
Stronger credit history is required for LP Accept
Indicates the Indicator Score is less than the required Indicator Score.
As a reminder, mortgages submitted prior to January 11, 2009, even if they are resubmitted after this date, will not receive this new feedback message even if the Indicator Score is less than 620.
- Remove the 45 percent debt-to-income (DTI) requirement for super conforming mortgages. In our November 24 Guide Bulletin, we announced that the maximum 45 percent debt-payment-to-income ratio requirement would apply only to manually underwritten super conforming mortgages, and not all super conforming mortgages as previously announced in the October 17 Guide Bulletin. On January 11, 2009, Loan Prospector was updated to assess all super conforming mortgages based on the overall characteristics of the loan to determine the borrower's creditworthiness and the acceptability of the loan based on our Guide requirements.
As part of this change, we also revised when the following feedback message is returned:
Message Code
Feedback Message
Purpose
PUR 93
Debt-to-income ratio exceeds the maximum allowable limit.
Indicates the debt-to-income ratio exceeds the maximum allowable limit.
Note: Loan Prospector will return this revised feedback message for all mortgages (super conforming and conventional conforming) when Loan Prospector determines the debt-to-income ratio exceeds the maximum allowable limit.