Summer is meant for longer days, not longer loan processing times. With our new enhancement, Loan Product Advisor® (LPASM) asset and income modeler (AIM) for income using direct deposits with paystub, you’ll get through borrower income assessment in a breeze. Additionally, we’re announcing more July LPA releases to help you get back the time you might spend clearing a loan to close so you can spend it enjoying the long summer days instead. 

AIM for Income Using Direct Deposits Just Got Better 

In today’s tight market, there’s no room for the high price of mistakes in loan origination. Recent analysis shows that issues with income documentation accounts for a third of loan defects. Our new capability, AIM for income using direct deposits with paystub, plays an expanded part in digitizing the income assessment process to help guard against these loan defects and potentially provide an increase in representation and warranty relief.

As announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2023-13, AIM for income using direct deposits is expanding to include a borrower’s digital paystub data in the income assessment. Adding paystub information into the income assessment can help you calculate income faster and more precisely to improve loan quality, simplify the mortgage process and expand access to credit. This new expansion is proof of Freddie Mac’s commitment to digitizing the mortgage process to increase speed and efficiency and reduce risk.

Finicity, a Mastercard company, is the initial AIM service provider supporting this enhancement. To get started:

  • If you’re currently using AIM for income using direct deposits with Finicity, reach out to your Finicity representative for details on how to use the paystub capability.
  • If you’re a Finicity client but aren’t using AIM for income using direct deposits, contact Finicity and your Freddie Mac representative to add AIM for income using direct deposits and the paystub capability. 
  • If you’re currently using AIM for income using direct deposits but aren’t a Finicity client, encourage your current provider to discuss support for the new capability with Freddie Mac.

Check out the feedback messages associated with this enhancement here or visit the Loan Advisor Resources and Learning web page. 

Have additional questions or need help getting started? Your Freddie Mac representative or the Customer Support Contact Center (800-FREDDIE) is ready to assist.

See Where the Affordable Lending Opportunities Are

We heard you and are acting on your feedback. In July, LPA will return two new feedback messages that will help you quickly identify affordable lending situations you can offer your borrowers:

  • FAL0046 indicates the data shows a first-time homebuyer exists on the loan application.
  • FAL0045 indicates that a loan may meet certain eligibility criteria for the credit fee cap as outlined in Guide Exhibit 19A.

These new messages are timely with the recent update in area median income (AMI) limits, which expands your opportunities to reach more borrowers with an affordable loan.

Additional July Loan Product Advisor Releases

  • Consistency updates in the display of the LPA Feedback Certificate PDF representation.
  • Numerous clarifying data quality feedback message updates to help you take action after you’ve received feedback from us.
  • Revision of two CHOICEReno eXPress® feedback messages to include specific information tailored to the borrower for more clarity on the maximum dollar amount of improvements allowed to deliver a loan as a CHOICEReno eXPress mortgage.
  • Addition of a new feedback message to alert LPA system-to-system (S2S) specification v5.0.06 and v5.1.00 users that these versions will be retired in March 2024.

Read full details in the July LPA release notes and check out the full list of July 2023 feedback messages.