Decreased origination costs, reduced loan production cycle times and positive net margins – Loan Product Advisor® (LPA℠) is a valuable piece of the puzzle in providing you opportunities for cost savings in the current market environment (Source: 2024 Cost to Originate Study). Check out the latest LPA news that’ll help you get the most out of your technology investment to do more and save more.

June LPA Release

The June LPA release notes include:

  • Updated area median income (AMI) limits in LPA as set by the Federal Housing Finance Agency (FHFA) and outlined in Single-Family Seller/Servicer Guide Bulletin 2024-C.
  • Updated feedback messages to provide additional details around using duplicate loan program identifiers (LPIs) and the LPI limit in your submissions.
  • Updated feedback message to notify you when the credit reporting company (CRC) used in the submission is invalid.
  • Representation and warranty (R&W) relief eligibility for the accuracy and integrity of tax return data when it’s compared with verified tax transcript data supplied by asset and income modeler (AIM) service provider, CoreLogic.
  • Bi-annual updates to CRCs and technical affiliates (TAs).
  • New feedback messages to help you identify collateral R&W relief eligibility more clearly when property data reports are submitted to Beyond ACE (bACE) API.
  • New and revised feedback messages to provide additional details when a loan can’t be processed due to the submitted information not meeting certain minimum requirements.

Find full details in the June release notes and check out the full list of feedback messages effective in June.

Get Ready – LPA Will Require Trended Data in August

As announced in Guide Bulletin 2024-6, LPA submissions will require trended data starting on August 4, 2024. Any submissions on or after this date without trended data will receive an error and the loan will not be processed. We encourage you to begin working with your CRCs and TAs to prepare for this change to avoid delays in delivery to Freddie Mac.

Feedback Message Updates Coming Soon

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

  • LPA version retirement – Effective July 1, revised messages to better support our annual transition of LPA specification versions.

2024 Cost to Originate Study is Here

Origination costs are up 35% – want to learn more about how lenders use LPA digital capabilities to originate loans that are $1,500 less costly? Our latest research shows how a comprehensive commitment to digitization can help you do just that. The 2024 Cost to Originate Study dives into:

  • Factors driving up origination costs.
  • Benchmarks of cost-efficient lenders.
  • Common challenges and best practices.
  • Savings for lenders that use LPA digital solutions.