February 2024 Loan Product Advisor Releases
As we settle into 2024, Freddie Mac continues to support you and your borrowers through this challenging market. Our commitment to enhancing our technology so you can open more doors for homeownership is our proof point – get the latest news for Loan Product Advisor® (LPASM) below to streamline your processes:
February Loan Product Advisor Release
If you’re submitting a loan with a condominium project to LPA, you’ll start seeing feedback messages to help you identify condo projects that do not meet our requirements early in the origination process. Using data from Condo Project Advisor®, LPA will determine if the project has a Not Eligible status, and if so, LPA will return messages with the reason for ineligibility.
For more information on this new policy update for Condo Project Advisor, check out the Single-Family Seller/Servicer Guide (Guide) Bulletin 2023-24.
Watch this video to learn how Condo Project Advisor can streamline your condo originations and help you close more condo loans with confidence. You’ll find more valuable resources on our Condo Project Advisor webpage.
Additional Feedback Message Updates Coming Soon
Here’s a preview of additional feedback messages that will be effective soon:
- Asset and income modeler (AIM) – Effective February 17, revised messages to help you better understand whether or not the income is eligible for representation and warranty relief based on the source from which the data is derived.
- LPA version retirement – Effective March 1, new messages will support the upcoming retirement of LPA specification versions 5.0.06 and 5.1.00.
- Cash-out refinance mortgage restriction – Effective March 3, new message will support the restriction of non-occupying borrowers on cash-out refinances, as announced in Guide Bulletin 2023-24.
- Accessory dwelling unit (ADU) income – Effective March 3, new messages will alert you when ADU income isn’t eligible to be used for mortgage qualification and aligns with the policy update announced in Guide Bulletin 2022-11.
Reminder: LPA Specification Retirement on March 1, 2024
LPA system-to-system (S2S) specification versions 5.0.06 and 5.1.00 will be retired as of March 1, 2024. If you’re still using these versions, make plans to update your systems to support either v5.2.00 or v5.3.00, or you won’t be able to submit new loans to LPA. Contact your Freddie Mac representative for additional guidance.
Note: Resubmissions on v5.0.06 or v5.1.00 will be accepted until September 1, 2024.