Learn About New and Upcoming Changes in Loan Selling Advisor®
Now Live in Loan Selling Advisor
LIBOR-indexed ARMs Are Now Retired
Effective January 1, 2021, Freddie Mac is no longer purchasing London Interbank Offered Rate (LIBOR)-indexed ARMs, regardless of the application received date or note date. Pricing requests for LIBOR and other retired cash contract products are no longer available via the request cash price sheet process.
Access the following resources for more Information:
- Single-Family News Article (November 13, 2020)
- Joint Freddie Mac and Fannie Mae ULDD announcement (December 1, 2020)
- LIBOR Transition Playbook
Coming Soon in Loan Selling Advisor
Home Possible Advantage® Retirement – New Warning Edit
As announced in Guide Bulletin 2020-43 , Sellers should stop using the valid value “Home Possible Advantage” when delivering Home Possible® mortgages in Loan Selling Advisor.
- Effective January 18, 2021, loans delivered through Loan Selling Advisor with valid value “Home Possible Advantage” for Uniform Loan Delivery Dataset (ULDD) data point Loan Program Identifier (Sort ID 404) will receive a warning edit advising the user that the value is invalid.
- This Loan Selling Advisor warning will become a critical edit on April 26, 2021.
This Loan Selling Advisor edit and the related message, as well as its status of warning or critical, will also be replicated in Loan Quality Advisor® purchase eligibility service and post fund data correction evaluations with funding date on or after January 18, 2021, for the warning edit, and on or after April 26, 2021 for the critical edit.
For more details, view the original Home Possible mortgage consolidation announcement in Guide Bulletin 2018-13 and ULDD web page for the recent announcement and updated specification for more details.
System Enhancements to Improve User Experience
Effective February 1, 2021, we’re enhancing the Loan Selling Advisor “purchase eligibility” messaging to enable you to remediate your purchase eligibility messages more efficiently. 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 last 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.
Guarantor Rate Sheet Enhancements
Coming this spring, we’re adding pricing identifier and pricing day information to the guarantor rate sheet:
- Pricing identifier will now be displayed on the rate sheet results main screen and all related pop-up screens within each of the existing guarantor rate sheet sections.
- We’re adding a new pricing day section to the Rate Sheet Results main screen. Your pricing identifier terms contract will also be updated to remove this information.
All sections of the guarantor rate sheet and the related pop-up screens can be viewed or printed with the new changes.
The Export Guarantor Rate Sheet XML Format Interface Specification Manual will be revised to include a new export for pricing day, and modifications to the existing exports to add Pricing Identifier.
- Eligibilities export - modified
- BUBD Ratios export - modified
- Credit Fees export - modified
- Pricing Day export -new
Stay tuned for additional technical integration and testing availability details soon. If you have any questions, please contact your Freddie Mac representative.
Updates to Form 996E Process for Loans Allocated to Cash Contracts
Coming this spring, we’re enhancing the Form 996E Warehouse Provider Release and Transfer process for cash contracts to include the automated build of Form 996E once the Form 1034E Custodial Certification Schedule has been built. With this change, you’ll no longer need to select each warehouse lender individually when manually building this form. Now, as soon as you build the Form 1034E in Loan Selling Advisor, the system will immediately build each Form 996E by warehouse lender (as you do manually today). Once Form 996E has been built, you can view the Form 996E ID on the Loan Pipeline screen and view/edit on the Create View Certification Forms screen. There will be a disclaimer on Form 1034E Build screens advising that the automated build of Form 996E is available for cash contracts only at this time.
If you prefer to continue to manually build Form 996E, you can still do so; however, you should build Form 996E prior to building Form 1034E.
In addition to this efficiency, we’re updating our Create/View Certification Forms: Search screen to include two additional attributes: “Loan Created Date” and “996E Created Date”. This addition will allow more specific search results, creating further efficiencies for your Form 996E process. With the addition of these new attributes, you can create/modify a customized Form 996E export to identify specific related attributes, such as investor contract identifier, seller loan identifier, warehouse lender identifier, loan created date, 996E created date, 996E ID, 1034E built date.
Stay tuned for more information on this and future enhancements to this process. For any questions, please contact your Freddie Mac representative.
Upcoming Change for Delivery of Condominium Unit Mortgages
As announced in Bulletin 2020-43, for mortgages with settlement dates on or after April 3, 2021, we’re updating the delivery requirements to specify the following:
- A condominium unit mortgage secured by a condominium unit in a two- to four-unit condominium project and a detached condominium unit that is located in any type of condominium project must be delivered as ULDD data point Project Classification Identifier (Sort ID 42) of Exempt From Review. While this required change is not effective until April, Sellers may implement this change immediately.
The ULDD specification was updated on December 1, 2020, to reflect this change. Sellers can view the announcement and the updated specification on the ULDD web page.