Enhanced Loan Delivery: CTE Availability, ULDD Updates and More
Enhancements to Loan Selling Advisor® and our Selling application programming interfaces (APIs) can make your job easier and help you more efficiently manage your loan delivery process. We have information about customer test environment (CTE) availability, plus updates and reminders to support your loan delivery needs.
Get Ready for Uniform Loan Delivery Dataset (ULDD) Phase 4a and 5 Updates – Client Testing & New Resources
Pre-release Client Testing for ULDD Phase 4a and 5
Freddie Mac and Fannie Mae (the GSEs) are updating the Uniform Loan Delivery Dataset (ULDD) to align with current GSE requirements and support the continued improvement of loan delivery standards. The September 12 GSE announcement details updates that align with the Enterprise Credit Score and Credit Reports Initiative requirements, the new Uniform Appraisal Dataset (UAD) 3.6 and the Single-Family Seller/Servicer Guide (Guide) updates for Sellers and business critical needs. It also provides an overview of the Phase 4a updates.
For additional information, please refer to the Summary of ULDD Phase 4a Updates and Phase 5 Specification and the ULDD webpage.
To ensure you have ample time to update your systems and test your integrations, we’re providing access to a Loan Selling Advisor pre-release CTE. The testing period will be available from April 1 to June 17. Click here to access the CTE or copy and paste this link into your web browser:
If you miss the pre-release testing, don’t worry, you can still test after our production release on June 3, in the Production Baseline Environment. The Production Baseline CTE will be upgraded approximately 2-3 weeks after the production release date. Until that time, the pre-release environment will be open for all ULDD Phase 4a and 5 testing needs. Click here to access this Production Baseline CTE, or copy and paste this link into your web browser: https://las-uat2.fmappsuat.fmrei.com/lsp_uat2/las-sec/
All clients should already have access to both the Production Baseline and Pre-Release CTEs. You may use your existing user acceptance testing (UAT) credentials (user ID and password) to access these test environments. Please contact your Freddie Mac representative if you have not received or do not have test credentials.
New ULDD Phase 5 Supporting Documentation and FAQ Updates
On December 19, the GSEs updated the ULDD supporting materials to help you prepare for the implementation of ULDD Phase 5.
The ULDD Phase 5 Supporting Documentation Updates announcement contains links to the updated Appendices and FAQs.
ULDD Phase 4a Collateral Data Points
Effective June 3, you may deliver:
- The valid value “Hybrid Appraisal” for ULDD Data Point, Property Valuation Method Type Other Description (Sort ID 90) to specify the valuation of a subject property.
- The valid value “Automated Collateral Evaluation” in lieu of “Property Inspection Alternative” formortgages delivered with automated collateral evaluation (ACE) for ULDD Data Point Investor Collateral Program Identifier (Sort ID 376).
- The valid value “Property Data Collection” in lieu of “Property Inspection Alternative” and ULDD Data Point Investor Feature Identifier (IFI) “J44” (Sort ID 368) for mortgages delivered with ACE+ PDR (ACE plus property data report), as applicable, for ULDD Data Point Investor Collateral Program Identifier (Sort ID 376).
The Guide will be updated to reflect these changes at a later date.
You can preview the updated version of Loan Selling Advisor and test readiness to deliver these data points in the CTE during the system availability from April 1 through June 17.
ULDD Phase 4a - Import of Document Custodian and Servicer Identifiers
We’re committed to saving you time and energy when you assign Document Custodians and Servicers in Loan Selling Advisor®. Currently, when you import and allocate loans to a contract, Loan Selling Advisor assigns the contract’s default Servicer and Document Custodian to each loan when using a paper note Document Custodian. For eNotes, you must manually assign an eNote Document Custodian to each loan.
Effective January 29, we are activating the following (previously optional) data points, so that you can include the Document Custodian and Servicer when you import loans with paper notes, and you will no longer be required to manually assign an eNote Document Custodian to each loan:
- Party Role Identifier – (Sort ID 620)
- Party Role Type (Document Custodian) – (Sort ID 621)
- Party Role Identifier – (Sort ID 645)
- Party Role Type (Servicer) – (Sort ID 646)
For more information on how to best leverage this change, check out our ULDD 4a Updates Learning Page, we’ll be updating it with additional resources later this month.
Loan Delivery Purchase Eligibility Rules
Critical Edits for Project Legal Structure Type
As previously announced, effective January 1, we’ve introduced new critical purchase eligibility edits in Loan Selling Advisor for loans assessed by Loan Product Advisor® (LPASM) and Loan Quality Advisor® to help you comply with Guide requirements. Upon delivery, a critical edit will fire if ULDD Data Point Project Legal Structure Type (Sort ID 47) does not match the Uniform Loan Application Dataset (ULAD) Data Point Project Legal Structure Type (Unique ID 50.00) in LPA and ULDD Data Point Project Legal Structure Type (Sort ID 47) in Loan Quality Advisor – including when Project Legal Structure Type is blank.
Critical Edits for Secondary Financing TLTVs
As previously announced in August 2023, Loan Selling Advisor will soon have critical edits for loans with Secondary Financing. Effective March 18, you will receive a critical error message, during loan delivery and evaluation, if you do not enter information for all secondary financing in the ULDD Data Points for Related Loans.
Loan Selling Advisor will return a critical edit on loans where the loan to value (LTV) ratio and total loan to value (TLTV) ratio match (indicating no secondary financing), yet the LTV and TLTV ratios differ in LPA and Loan Quality Advisor (indicating presence of secondary financing).
Loans originated with secondary financing must be delivered with all related loan data as outlined in Guide Section 6302.34, Special delivery requirements for Mortgages with secondary financing.
Need more help? Check out the ULDD webpage for our latest technical resources and delivery requirements, or contact the Customer Support Contact Center (800-FREDDIE) and select the “Loan Delivery” option. We’re glad to guide you through it.
Condominium Projects Not Eligible
Effective February 26, we’re adding a warning edit in Loan Selling Advisor to help you identify condominium loan eligibility. Guide Bulletin 2023-24 announced that condominium loans secured by a condominium project that receive a “Not Eligible” status in Condo Project Advisor® are not eligible for sale to Freddie Mac. You’ll receive this warning edit if you deliver a loan secured by a condominium unit in a condominium project with a Project Assessment Request (PAR) finding status of “Not Eligible.” This edit will become critical effective April 29.
Critical Edit for Application Received Date
We’re making updates to help you meet Consumer Financial Protection Bureau (CFPB) rules requiring disclosures to be provided before the borrower’s closing and settlement of the loan. As we previously announced, effective May 27, there will be a new critical edit in Loan Selling Advisor to validate that ULDD Data Point Application Received Date (Sort ID 224) is before ULDD Data Point Note Date (Sort ID 320).
Selling API Updates
New Guarantor Settlement Purchase Statement API
In case you missed it, on December 1, we rolled out a new API to simplify your guarantor settlement and reconciliation process. The API streamlines your manual tasks with fast, easy access to Guarantor purchase settlement statement data, including funding details and loan-level credit fees. Key features include:
- Integrated access to loan-level Guarantor purchase statement data.
- Access to all purchase statements, funding details and applicable Exhibit 19 credit fees in a single response file.
- Access to data by submitting a Seller Identifier and settlement date.
- An alternative method to obtain existing Loan Selling Advisor Guarantor purchase statement data via export capabilities.
Cash Settlement Purchase Statement API Update
You asked for it and we listened. Effective December 14, we added new data so that you can more efficiently reconcile all loans purchased for cash. We added two new data points, Servicing Option and Scheduled First Payment Date.
You can learn more about both of these Settlement Purchase Statement APIs in our Developer Portal or contact your Freddie Mac representative for more details on the technical specifications and how to start preparing to integrate.