Do Less and Say 'YES' to More Borrowers with Help from Loan Prospector’s
New Enhancements
"This new feature will assist us in identifying and selecting
the right financing option for our customers. Getting additional
feedback, without having to send extra data elements to LP, is a
quicker and more user-friendly process. Our loan officers are excited
about the change."
— Dan Mekemson
Senior Vice President
Johnson Bank
The latest enhancements to Loan Prospector® will automate more of your
process and provide additional feedback. These enhancements enable you to:
Reach Out to More Borrowers with the Right Solutions
With Loan Prospector's newest feature, you don’t have to conduct manual
calculations to determine if your borrower meets median income and property
location requirements for Freddie Mac's Affordable Gold products. Loan Prospector
will now notify you if your borrower meets these requirements, whether you select
an Affordable Gold product or not.
If you receive this notification, be sure to check out our Affordable Gold
products. They provide low-cost solutions for borrowers facing mortgage finance
challenges and could be the answer you’ve been looking for:
Affordable
Gold 5 — only requires a 5 percent down payment and a variety
of sources can be used to fund the down payment, closing costs, financing
costs and prepaids.
Affordable Gold
97 — offers loan-to-value ratios up to 97 percent with more
options for the sources of funds that borrowers can use for their down payment.
Enhancement At A Glance
Description
Automatically notifies you when a loan meets
median income and property location requirements for Freddie Mac’s
Affordable Gold (AG) 97 and Affordable Gold 5 products.
Benefits
Identifies low-cost conventional financing solutions you can offer
credit challenged borrowers with limited down payment funds.
Automates another portion of your process by eliminating the manual
eligibility calculations.
Extends the built-in credit flexibilities of Freddie Mac’s
AG products to more borrowers.
Feedback location
New Affordable Product Information section of Full Feedback
Certificate.
Recommended processing
steps
If you submitted the loan as an Affordable Gold Product, no action
is necessary.
If you submitted the loan as a conventional conforming loan:
LoanProspector.com users – Select Affordable Product
Type and resubmit.
LP Classic® users – Select appropriate
Affordable Program Identifier and resubmit.
“LP’s new excessive value message, frankly, is the closest
thing now available to an integrated fraud detection tool at the front
end of the process. This new feature is not only going to protect lenders,
brokers, investors and shareholders but also borrowers, especially first-time
borrowers and emerging market customers. It’s huge!”
— Bob Peifer
Executive Vice President & Director of Underwriting
US Bank Home Mortgage in Bloomington, MN
Make Sure You Have the Right Property at the Right Value
Loan Prospector now helps you identify potentially risky loans before they
close, so you can direct your attention to loans that need it most and make
more informed decisions earlier in your origination process.
First, Loan Prospector will verify the subject property address exists
and is entered correctly.
Then, Loan Prospector will check the stated value of the subject property
against the estimate provided by Freddie Mac’s automated valuation
model, Home Value Explorer®, to determine whether it’s consistent
with local market values.
If your subject property value appears to exceed local market values, you’ll
receive a feedback message in the Loan Processing Information section on your
Full Feedback Certificate.
Enhancement At A Glance
Excessive Value Feature
Address Validation and
Standardization Feature
Description
Automatically notifies you when the stated
subject property value on a conventional conforming loan is potentially
excessive compared to local market property values.*
Matches the subject property address against
the US Postal Service database.
Benefits
Saves time and potentially reduces risk by helping you direct your
attention to loans that need it most.
Helps you make more informed decisions earlier in the process.
Helps you protect your borrowers by identifying potentially risky
loans during the pre-funding process.
Ensures data integrity by confirming subject
property address exists and is entered correctly
Feedback
location
Loan Processing Information section
of Full Feedback Certificate [See
example].
New Address Information section of
Full Feedback Certificate
Recommended
processing steps
Review the loan to ensure the stated value for the subject property
is entered correctly.
Carefully review the appraisal.
If changes are made, resubmit the loan
If feedback indicates address cannot be
standardized, verify that you have entered the address correctly.
*Note:
The excessive value message is a supplemental resource for identifying potentially
risky loans during the pre-funding process. As always, you should continue to
follow your normal loan review process to ensure the property value you submit
to Loan Prospector is accurate.
