A: No. The new features are supplemental tools that provide additional
feedback messages and data. You have the option to incorporate the new messages
into your process.
Q: How does Loan Prospector determine that the stated subject property
value may be excessive?
A: Loan Prospector will compare the stated subject property value against
a property estimate provided by Home Value Explorer® (HVE), Freddie
Mac’s automated valuation model. If the stated subject property value
is significantly higher than the HVE estimate, the excessive value message
(EVM) will be returned.
Q: Is a loan still eligible for purchase by Freddie Mac if it receives
an excessive value message?
A: Yes. The presence of the message will not impact the eligibility of the
loan for purchase by Freddie Mac.
Q: Will the EVM be returned if the stated subject property value is
significantly less than the HVE estimate?
A: No. The EVM will only be returned when the stated value for the subject
property appears to be excessive.
Q: Will the EVM be available for all transactions?
A: No. The EVM is available for 1-unit conforming conventional loans for
all risk classes and all products. It is not available on multi-unit, FHA,
VA or jumbo loans.
Q: What should I do if I receive an EVM?
A: Although no action is required when an EVM is returned, we suggest
you review the appraisal closely.
Q: Will the risk class be impacted if a loan receives an EVM?
A: No. The risk class on loans receiving and EVM will not be affected.
Q: Will loans that receive an EVM be subject to more scrutiny or review
through Freddie Mac’s quality control process?
A: No. Freddie Mac’s process for selecting loans for quality control
review will not change.
Q: If the “address is not found” message is returned, what
should I do?
A: Although no action is required, we suggest that you verify that the
address exists and is entered correctly. In some cases, such as new construction,
the message will be returned because the address is not yet in the US Postal
Service database, and Loan Prospector cannot verify it exists.
Q: I received a message indicating my borrower may be eligible for an
Affordable Gold product. What should I do?
A: If you want to take advantage of the Affordable Gold (AG) product flexibilities,
then LoanProspector.com users should select Affordable Product Type and LP
Classic® users should select the appropriate Affordable Program Identifier
and resubmit the loan.
Q: I received a message stating that my loan meets AG income and property
eligibility. Does that mean my borrower is eligible for an AG loan?
A: No. All other Affordable Gold credit, delivery and execution requirements
must also be met to qualify for an Affordable Gold product.
Q: Do I have to select Affordable Product Type on the initial loan submission
in order for Loan Prospector to complete the income eligibility calculation?
A: No. Loan Prospector will complete the income eligibility calculation
on all conventional conforming, FHA and VA loans, regardless of whether you
select an Affordable Product Type or Affordable Program Identifier when you
submit the loan to Loan Prospector.
Q: Why is Loan Prospector standardizing addresses?
A: In order to ensure data integrity, Loan Prospector will use the US
Postal Service database to verify that the subject property address exists
and is entered correctly. The addresses will be included in the Feedback Certificate
in a standard format to establish more consistent records.
