This month, we’re notifying you of the Loan Product Advisor® (LPA℠) July release and reminding you about new feedback messages for collateral representation and warranty (R&W) relief and the upcoming trended data requirement.

July LPA Release

The July release includes:

  • Revised messages to support our annual transition of LPA specification versions. The messages will be dynamic so they can be revised as needed without the creation of a new message code.

Reminder: Property Data Report Submitted to bACE API Feedback Messages

Effective June 12, we added new feedback messages to help you better identify eligibility for collateral R&W relief for ACE+ PDR (automated collateral evaluation plus property data report) eligible loans. When you submit a PDR using the Uniform Property Dataset (UPD) to bACE API (Beyond ACE application programming interface), LPA will leverage information from the PDR submission to return new collateral R&W messages, including one identifying collateral R&W relief eligibility.

We’ve also updated resources to help you understand and operationalize this enhancement:

Trended Data Requirement Coming in August

As announced in Single-Family Seller/Servicer Guide Bulletin 2024-6, LPA will require trended data on credit reports for initial submissions of conventional loans starting on August 4, 2024. For Federal Housing Administration (FHA) and U.S. Department of Veterans Affairs (VA) loans, there are no changes with respect to credit report requirements at this time.

We encourage you to work with your credit provider to prepare for this change to avoid delays in delivery to Freddie Mac. Depending on your arrangement with your credit provider, you may begin seeing the trended format on returned credit reports with its associated charges from your credit provider when LPA begins accepting trended data in June.

See full details on all updates in the July LPA release notes

Feedback Message Updates Coming Soon

Here’s a preview of feedback messages that will be effective August 11:

  • Funds to close/cash-out amount – Revised messaging regarding funds to close and cash-out amount will give clear indication when the loan is ineligible for sale to Freddie Mac.
  • Income – Revised messages related to pension, U.S. Department of Veterans Affairs (VA) benefits and social security income will provide more concise details of documentation requirements.
  • ACE – Revised messaging to align with language in the Guide.
  • Application Received Date – New data quality messages to indicate when application received dates are required.
  • Intent to Occupy – Retiring a duplicative message.