To help you make quicker decisions and underwrite more loans, we’re always improving our Freddie Mac Loan Advisor® feedback messages based on client feedback, tool enhancements and Single-Family Seller Servicer Guide updates.

Loan Product Advisor

As part of our continued efforts to provide you with clear messaging that simplifies and clarifies what your next action should be, we’re updating several Loan Product Advisor® (LPASM) feedback messages.

  • Effective August 28, 2021, a new Secured Overnight Financing Rate (SOFR) ARMs message will help provide more clarity for how the qualifying interest rate, that is used to determine debt-to-income, is calculated.
  • Effective September 20, 2021, a new message will return when employment information is not provided on an FHA loan (and the employment value reflects zero months). If the information / value is incorrect, the message indicates to enter the correct employment start date and resubmit the loan.
  • Effective October 8, 2021, messages will be updated to notify you when a loan is not eligible for automated collateral evaluation (ACE).
  • Effective October 31, 2021, new asset and income modeler (AIM) messages will be added to assess rental income during the loan underwriting process. 

View the LPA feedback message updates here.

Loan Quality Advisor

To provide you with more consistency and clarity, we’ve made some of the same LPA message updates to Loan Quality Advisor® in addition to a few others.

  • Effective July 1, 2021, a new message will notify clients that Freddie Mac no longer purchases Constant Maturity Treasury (CMT)-indexed ARMs with application received dates on and after July 1, 2021.
  • Effective August 28, 2021, a new SOFR ARMs message will help provide more clarity for how the qualifying interest rate is calculated. Another message will notify clients when the refinance program identifier does not match between Loan Quality Advisor and LPA.
  • Effective October 8, 2021, several messages will be updated to notify you when loans are not eligible for ACE.

View the Loan Quality Advisor feedback message updates here.

Stay up to date with the latest Loan Advisor feedback message changes by bookmarking the Resources & Learning web page.

REMINDER: CMT-indexed ARMs Retirement

As announced in the Guide Bulletin 2021-4, Freddie Mac will not purchase any CMT-indexed ARMs with an application received date of July 1, 2021 or later. We recommend that you clear your CMT contract pipeline prior to October 1, 2021, as we’ll no longer purchase CMT-indexed ARMs on or after October 1, 2021, regardless of the application received date or note date.

Effective October 1, 2021, pricing requests for CMT cash contract products will no longer be available via the request Freddie Mac cash price sheet process.