Loan Selling Advisor’s August 2023 Updates
See the newest enhancements coming to Loan Selling Advisor® to help improve your loan delivery. Check out these updates.
New Loan Delivery Rules Supporting the Duty to Serve Credit Fee Cap
As a result of our Duty to Serve Credit Fee Cap announcement in Guide Bulletin 2023-16, effective August 28, when you deliver the IFI, we’ll implement new warning messages in Loan Selling Advisor to support these requirements for the Duty to Serve Credit Fee Cap, as described in Guide Exhibit 19, Credit Fees and in accordance with Guide Exhibit 19A, Credit Fee Cap Eligibility Criteria.
The warning messages will correspond with the delivery instructions described in Guide Exhibit 34, Investor Feature Identifiers, for certain Duty to Serve mortgages with an area median income (AMI) percent of less than or equal to 100%:
- For loans secured by a property located in a designated rural area and originated by a small financial institution, you must deliver ULDD Data Point IFI (Sort ID 368) and enter a valid value of “J84.”
- Warning message will indicate the loan is not secured by a property located in a designated rural area.
- For loans secured by a property located in a designated rural area in a high needs rural region, you must deliver ULDD Data Point IFI (Sort ID 368) and enter a valid value of “J85.”
- Warning message will indicate the mortgage is not secured by a property located in a designated rural area in a high needs rural region.
These warning messages will convert into critical messages in December 2023. Freddie Mac will provide the effective date for the critical message transition in a future communication.
New AMI% Display on Loan Screen and in Export Datasets
We’re making it easier to understand AMI at delivery.
You can now see the area median income percent (AMI%) for each loan imported to Loan Selling Advisor. The value is displayed in the ‘Calculated Values’ section at the bottom of the ‘View Loan’ screen. With more convenient access to this information, you get greater transparency into the fees that are calculated and/or waived based on AMI% at delivery.
You can also export the AMI% for all loans imported to Loan Selling Advisor. This will help you view loans by AMI% to research and assess past originations under beneficial pricing offerings such as our Duty to Serve programs or Home Possible®. This eliminates the need to request these reports from your Freddie Mac representative.
Loan Selling Advisor Critical Edits Comparing Data in Loan Product Advisor® (LPASM) and Loan Quality Advisor
We’ll soon be introducing new critical purchase eligibility edits in Loan Selling Advisor for loans assessed by LPA and Loan Quality Advisor. Upon delivery, a critical edit will fire if any of the ULDD data points listed below do not align with the corresponding data points in LPA and Loan Quality Advisor. This data integrity check can help you assess your compliance with Freddie Mac’s purchase eligibility guidelines and reduce the time you spend fixing delivery errors.
Project Legal Structure Type
Effective October 2, ULDD Data Point Project Legal Structure Type (Sort ID 47) must match the Uniform Loan Application Dataset (ULAD) Data Point Project Legal Structure Type (Unique ID 50.00) in LPA and ULDD Data Point Project Legal Structure Type (Sort ID 47) in Loan Quality Advisor – including when Project Legal Structure Type is blank.
Secondary Financing – Coming This Winter
When delivering loans in Loan Selling Advisor, you must enter information for all secondary financing in the ULDD Data Points for Related Loans. Freddie Mac will begin firing a critical warning when the loan to value (LTV) ratio and total loan to value (TLTV) ratio in Loan Selling Advisor are the same (indicating no secondary financing) and the TLTV ratio is greater than the LTV ratio in LPA and Loan Quality Advisor (indicating presence of secondary financing) and no related loan data is provided in Loan Selling Advisor.
Need more help? Check out the ULDD webpage for our latest ULDD updates, technical resources and delivery requirements, or contact the Customer Support Contact Center (800-FREDDIE) and select the “Loan Delivery” option. We’re glad to guide you through it.
Critical Edit for Loans with a Project Certified status PAR finding
Effective November 1, Loan Selling Advisor will fire a critical purchase eligibility edit when ULDD Data Point IFI (Sort ID 368) is “J97” and ULDD Data Point Project Classification Type (Sort ID 42) is not “Exempt from Review.” This new purchase edit enforces delivery requirements for loans secured by a condominium unit in a condominium project with a Project Certified status PAR finding, as outlined in Guide Bulletin 2023-15.
Loan Eligibility for “Green” Cash-specified Payup Type
In August 2022, we added a new cash-specified pool type value of “Green” as part of our cash rate sheet enhancements. We’re reminding you of the eligibility and delivery requirements for the “Green” cash-specified pool type so you and your borrowers can take advantage of the new payups associated with:
- GreenCHOICE Mortgages® plus solar panels: Must be delivered with ULDD Data Point Loan Program Identifier (Sort ID 404) of “GreenCHOICEToPayOffOutstandingEnergyDebt” and ULDD Data Point Renewable Energy Component Type (Sort ID 90.2) of “Solar”
- New construction with Home Energy Rating System (HERS) Index score less than or equal to 60: Must be delivered with ULDD Data Point IFI (Sort ID 368) of “J99.” Prior to delivery, you’ll need to acquire the HERS score for the loan through RESNET and confirm the score is less than or equal to 60.
- New construction with solar panels: Must be delivered with ULDD Data Point IFI (Sort ID 368) of “J98.”
In addition, we updated our Cash Payups for Mortgages with Specified Characteristics FAQ and provided additional guidance on loan eligibility criteria for the new payup (Q10).
To verify qualification for the payup, Freddie Mac will perform a post-fund quality control review process on loans delivered through a Green cash-specified payup contract. Any fallouts will be subject to reversal of the payup.