Now Live in Loan Selling Advisor®

SOFR-Indexed WAC ARM PCs are Now Eligible for Settlement

Nonconvertible Secured Overnight Financing Rate (SOFR)-indexed weighted average coupon (WAC) adjustable rate mortgage (ARM) participation certificates (PCs) are now eligible for settlement through Loan Selling Advisor®.

Check out the following Freddie Mac Learning tools for assistance:

View the November 13 Single-Family News Article for additional details.

Enhancements to the Cash Extension and Pairoff Fee Details Data Set

We’ve updated the standard data set called Cash Extension and Pairoff Fee Details to allow export of up to five occurrences of the following contract attributes:

  • Pairoff Assessed Date Time
  • Pairoff Contract Amount
  • Pairoff Fee Amount

This is in addition to the following previously announced contract attributes (including up to 10 of the most recent occurrences of the extension fee attributes) included in this data set:

  • Total Extension Fee Amount
  • Extension Assessed Date Time
  • Extension Period
  • Extension Fee Amount
  • Total Pairoff Fee Amount
  • Pairoff Amount

With this data set, you can export these extension fee and pairoff fee details without creating a customized dataset. You can also create a new, or modify an existing, customized data set using the new attributes.

The Implementation Guide for Loan Selling Advisor Export (Phase 3) - Sellers has been updated to include the new Cash Extension and Pairoff Fee Details data set.

View the November 13 Single-Family News Article for our original announcement.

Resource Links:

Number of Allowable Cash Extensions Has Increased

As mentioned in Guide Bulletin 2020-45, we allow unlimited cash contract extensions, as long as the total extension period does not exceed 30 days from the original contract expiration date. Contact the Freddie Mac cash desk or your Freddie Mac representative for more information.

View our original announcement in this November 13 Single-Family News Article.

Here’s What’s Coming Soon in Loan Selling Advisor

LIBOR-index ARMs Are Retiring

As a reminder, Freddie Mac will not purchase any London Interbank Offered Rate (LIBOR)-indexed ARMs with an application received date on or after October 1, 2020. We recommend that you clear your LIBOR ARM cash contract pipeline prior to January 1, 2021, as Freddie Mac will no longer purchase LIBOR-indexed ARMs on and after January 1, 2021, regardless of the application received date or note date.

Effective January 1, 2021, pricing requests for LIBOR and other retired cash contract products will no longer be available via the request cash price sheet process.   

View the November 13 Single-Family News Article and the December 1 joint ULDD announcement for additional details.

Home Possible Advantage® Retirement - Warning Edit Coming in January

As announced in Guide Bulletin 2020-43, effective April 26, 2021, you’ll no longer be able to submit or deliver Home Possible® Mortgages as Home Possible Advantage through Loan Product Advisor® or Loan Selling Advisor.

Effective January 18, 2021, loans delivered through Loan Selling Advisor with valid value “Home Possible Advantage” for ULDD data point loan program identifier (Sort ID 404) will receive a warning edit. This warning will become a critical edit on April 26, 2021.

Effective April 26, 2021:

  • Loan Product Advisor will be updated to prevent the submission of the valid value “Home Possible Advantage” Offering Identifier 250 for ULAD data point Loan Program Identifier (unique ID 178.00). Originators must only use the valid value “Home Possible” Offering Identifier 241 when originating Home Possible mortgages.
  • Loan Selling Advisor will be updated to prevent the delivery of the valid value “Home Possible Advantage” for ULDD data point Loan Program Identifier (sort ID 404). Sellers must only use the valid value Home Possible Mortgage when delivering Home Possible mortgages.

View the original Home Possible Mortgages consolidation announcement in Guide Bulletin 2018-13 and the recent joint ULDD announcement for more details.

Updates to Your User Experience are Coming in January

In late January, we’re enhancing the Loan Selling Advisor “purchase eligibility” messaging display to provide you with a more user-friendly experience. Currently, your messages are displayed in bulleted format. With this upcoming change, you’ll see your messages in table format, which aligns with updates made to the “evaluate loans” messaging display earlier this year.

In addition, we continue to enhance general usability within Loan Selling Advisor to make it easier for you to navigate the system and manage your business.