New Feedback Message to Identify Submissions that May Be Eligible for Reduced Home Possible Mortgage Delivery Fee

[September 7, 2007]

Based on your feedback, on November 18, we're updating Loan Prospector® with a new feedback message to help you address Home Possible Mortgage® delivery fee modifications we announced in our August 1 Freddie Mac Single-Family Seller/Servicer Guide (Guide) Bulletin [PDF].

For Home Possible purchase transactions, the following new feedback message will:

• Notify you when the income used to qualify a borrower for a Home Possible Mortgage is equal to or less than 80 percent of the applicable area median income (AMI)
• Indicate that the loan may be eligible for a reduced Home Possible delivery fee.

Message Code	New Feedback Message
LPR K8	The income used to qualify the borrower for this mortgage is at or below 80% of the Area Median Income and may be eligible for a reduced Home Possible delivery fee.

We encourage you to begin using this LPR/K8 message code in your processing in anticipation of the November 18 message implementation.

For Home Possible Mortgages when the income used to qualify a borrower for a Home Possible Mortgage is greater than 80 percent of the AMI and the loan is subject to the full Home Possible delivery fee, we will update Loan Prospector to return the following existing feedback message:

Message Code	New Feedback Message
LPR JG	This loan is subject to a Home Possible delivery fee.

For more information:

• On our recent delivery fee modifications, please review our August 1 Guide Bulletin.
• Third-party originators: Please check with your wholesale lender on Home Possible pricing on a loan-by-loan basis.
• On AMI limits, please refer to the Affordable Income & Property Eligibility tool.