We’re making Loan Product Advisor® (LPASM) updates in August to improve your experience, offer you more solutions and align with the Single-Family Seller/Servicer Guide. Some of the changes include:

  • Enhancements to automated collateral evaluation (ACE) to recognize existing appraisals on properties and program types that qualify for ACE appraisal waivers.
  • Addition of the Freddie Mac Refi PossibleSM offering to help more clients benefit from refinancing.
  • Improvements to the LPA Feedback Certificate.
  • Updates in support of the Amended and Restated Preferred Stock Purchase Agreement (PSPA) and the Revised General Qualified Mortgage (QM) Rule.
  • Inclusion of a sponsored third-party originator’s (TPO) name throughout the life of a loan when the TPO is the originating company.
  • A new critical edit to notify you when the wrong state code is entered as part of an address.

Read the August LPA release notes and the August LPA feedback messages for the full details.

AIM Enhancement: Rental Income Assessment

Effective October 31, 2021, LPA asset and income modeler (AIM) will be enhanced to enable assessment of rental income reported on the borrower’s individual tax returns. The assessment will include an automated analysis to determine if the submitted monthly income amount for each property is supported based on the Schedule E of the tax return.

LPA will return the results for each property as AIM rental income informational messages that can help you during the underwriting process by providing: 

  • Early visibility into LPA’s view of the rental income for each disclosed property, including a derived monthly income amount.
  • Loan-specific and property-specific feedback messages.
  • Help in streamlining the loan origination process and reducing origination costs.

How It Works – In Three Steps

  • Step 1 – Upload the required most recent, individual tax return to your third-party service provider*. 
  • Step 2 – Once you submit the loan to LPA using the unique reference number, AIM will perform an automatic assessment of the rental income from the tax return data, based on the information submitted for each property.  
  • Step 3 – The results of the assessment will be returned on the LPA Feedback Certificate with informational feedback messages.

*This enhancement will initially only be available through LoanBeam. Plans for participation by CoreLogic and LoanCraft are currently underway and their deployment date will be communicated at a later date.    

Assets and Reserves Feedback Message Updates

Effective October 31, 2021, asset and reserves feedback messages will be updated to provide you with more transparency into the details of the sources of eligible and ineligible asset funds included in borrower deposits. View the messages.

Reminder: Don’t Put Off Updating Your System Access Credentials

Guide Bulletin 2020-45 announced that we are further enhancing our access management provisioning standards, consistent with Freddie Mac’s overarching objective of protecting your data from security threats.

Since that announcement, we’ve been notifying clients that, starting in 2021, system-to-system (S2S) authentication credentials for Freddie Mac tools must be reset every 365 days.

If you haven’t completed this process, check out the resources provided in the Single-Family news article to help you complete this important process and avoid the risk of suspension of your access to Freddie Mac tools.

Extended Weekend Maintenance Windows for Technology Tools

Please refer to our Client Resource Center for up-to-date information about the status of our technology tools – including information related to the extended maintenance windows on September 18-19 and 25.