August’s release for Loan Product Advisor® (LPA℠) supports enhancements to the system-to-system specification. We’ve made updates that expand your asset and income modeler (AIM) service provider options, help you better identify collateral representation and warranty (R&W) relief eligibility messages for your submissions and more. Plus, the trended data requirement and updates to various feedback messages also become effective in August.

August LPA Release

The August release includes:

  • Requirement of trended data on credit reports for initial submissions of conventional loans starting on August 4, 2024, as announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2024-6. We’re also implementing a new feedback message to notify you when trended data is missing from your submission.
  • New AIM service provider, Argyle, to verify income and employment using employment data, giving you more options for sourcing your data.
  • New Property Data Identifier data point to provide an additional method of obtaining collateral R&W relief eligibility feedback messages for ACE+ PDR (automated collateral evaluation plus property data report) eligible loans.
  • New Loan Program Identifier (LPI) to support a policy update in Guide Bulletin 2024-8 for Servicers to use LPA to assess creditworthiness of Freddie Mac-owned loans for mortgage assumptions. This LPI is only for use by Servicers assessing assumptions and is not applicable to newly originated mortgages.
  • Various feedback message updates related to:
    • Funds to close/cash-out amount – Revised messaging regarding funds to close and cash-out amount will clearly indicate when the loan is ineligible for sale to Freddie Mac. We’re also updating messaging to clarify when reserves are required for financed properties.
    • Income – Revised messages related to pension, U.S. Department of Veterans Affairs (VA) benefits and social security income will provide more concise documentation requirements.
    • Automated collateral evaluation (ACE) – Revised messaging to align with language in the Guide.
    • Application Received Date – New data quality messages to indicate when application received dates are missing and must be submitted, as well as warnings if the data appears inaccurate.
    • Intent to Occupy – Retiring a duplicative message.
  • Update to the Quick Links menu for direct entry users to better access the Assign Loan functionality.
  • Technical update to the monthly qualifying principal and interest payment calculation for adjustable-rate mortgage (ARM) loans.

For full details on all updates in this release, check out the August LPA release notes.

Feedback Message Updates Coming Soon

Here’s a preview of feedback messages that will be effective in September:

  • Caution messages – new and revised messaging to provide additional details to help users quickly identify certain reasons for the Caution response.