Loan Selling Advisor February 2024 Updates
What’s new with Loan Selling Advisor®? We’re confident these new features will make your job easier with a new Uniform Loan Delivery Dataset (ULDD) Revisions page, mandatory cash contracts screen enhancements, Condo Project Advisor® project status verification when evaluating loans, upcoming loan delivery purchase eligibility rules and more. Get the details here.
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Uniform Loan Delivery Dataset (ULDD) Revisions Page
Want to find all the latest ULDD-related updates in one place? We’ve created the new ULDD Revisions webpage to do just that. This page provides revisions to the ULDD requirements that were made after the September 12, 2023 announcement – including ULDD specification updates and ULDD impacts that were previously communicated in Single-Family Seller/Servicer Guide (Guide) Bulletins.
The new ULDD Revisions page will be periodically updated with ULDD revisions until the next ULDD publication.
Note: The ULDD Revisions webpage is not a replacement or substitute for the requirements in the Freddie Mac Guide or any other contractual agreements. Sellers remain responsible for complying with the Guide requirements, including those set forth in Guide Chapter 6302: Mortgage Delivery Instructions.
The initial version of the ULDD Revisions webpage includes the following:
ULDD Phase 4a Updates - Data Point Revision Effective Date: June 3, 2024
- Conditionality detail updates to include Sort ID: 90 - Property Valuation
Method Type Other Description for Hybrid Appraisal:- Sort ID: 77 – Bedroom Count
- Sort ID: 78 – Property Dwelling Unit Eligible Rent Amount
- Implementation Notes update to add Hybrid Appraisal to the “Other” Implementation Note:
- Sort ID: 89 – Property Valuation Method Type
ULDD Phase 5 – Business Critical Requirements – Mandate Date: July 28, 2025 and Transition Period (optional delivery) date from June 3, 2024
- Conditionality detail update to require the data point when mortgage insurance (MI) premium source is “Lender” and delivery for “Investor” when available:
- Sort ID: 430.1 – MI Interest Rate Adjustment Percent
- Conditionality detail update to require the data point when MI Certificate Identifier exists and delivery for “Investor” when available:
- Sort ID: 430.2 - MI Premium Plan Type
- Implementation Notes update to remove first-time homebuyer reference:
- Sort ID: 598.1 – Intent To Occupy Type
ULDD updates in Guide Bulletins
- October 4, 2023 – Bulletin 2023-19
- December 6, 2023 – Bulletin 2023-24
For more information, please contact your Freddie Mac representative or our ULDD mailbox.
Simplifying Mandatory Cash Contract GUI Screens
Effective January 29, 2024 in line with our continuing efforts to simplify our process and streamline user experience in Loan Selling Advisor, we’ve removed the following functions related to mandatory cash contracts:
- The option to search for open mandatory cash contracts. These are contracts that were priced but not accepted. You’ll receive a message “No Results Found” when attempting to search for an open mandatory cash contract. You can still use the “Price Open Contracts” link on the “View Import Cash Contracts Results” screen to price these types of open contracts.
- The option to “Compare” from the Pairoff or Extension Details” screen.
- Removed the option to “Pairoff and transfer to a new contract” the “Select Pairoff or Extension Details” screen.
COMING SOON
Home Possible® Very Low-Income Purchase (VLIP) Mortgage Credit
At Freddie Mac, we strive to further our affordable housing mission by expanding access to credit responsibly and providing opportunities for sustainable homeownership for very low-income homebuyers. We’re evolving the Freddie Mac BorrowSmart® program, currently offered on a negotiated basis, by providing a $2,500 credit for all Home Possible mortgages with very low-income purchase (VLIP) borrowers. The credit, which will be provided on a temporary basis, must be used towards a borrower’s down payment and/or closing costs.
For mortgages meeting the requirements of Bulletin 2024-A, Sellers must deliver the following ULDD Data Points:
- Loan Program Identifier (Sort ID 404) and enter a valid value of “Home Possible Mortgage.”
- Investor Feature Identifier (Sort ID 368) and enter a valid value of “K10”, indicating Home Possible VLIP Mortgage Credit
The Home Possible VLIP Credit will be effective for mortgages with settlement dates on or after March 1, 2024 and on or before February 28, 2025.
Loan Selling Advisor has been updated to reflect the Home Possible VLIP Credit.
Read Guide Bulletin 2024-A, issued February 5, for more detailed requirements.
Important Dates – Upcoming Loan Delivery Purchase Eligibility Rules
Please note the following upcoming warning and critical edit dates for loan delivery purchase eligibility rules in Loan Selling Advisor:
- Last Paid Installment Due Date and UPB and for Co-Issue XChange® – Warning edit on February 26, 2024. The warning edit will display a message for items to be amended to meet our delivery requirements for Cash.
- Condo Project Advisor® Not Eligible status PAR finding – Warning edit on February 26, 2024 Critical edit on April 29, 2024. Refer to Guide Bulletin 2023-24.
- Secondary Financing LTV/TLTVs – Critical edit on March 18, 2024. Refer to Guide Section 6302.34 and our January 12, 2024 article.
- Condo Project Advisor® Project Certified status – Critical edit on April 2, 2024. Refer to Guide Bulletin 2023-15 and our October 12, 2023 article.
- Application Received Date – Critical edit beginning May 27, 2024. Refer to Consumer Financial Protection Bureau (CFPB) rules and our September 20, 2023 article.
Included below are key updates for specific loan delivery purchase eligibility rules we are implementing through March:
Condominium Projects Not Eligible status in Condo Project Advisor
Beginning February 26, 2024, Loan Selling Advisor will display a warning message for loans that are secured by a condominium unit in a condominium project that has a “Not Eligible” status PAR finding. This warning message will become critical on April 29, 2024.
These condominium unit Mortgages are not eligible for sale to Freddie Mac.
We encourage you to use Condo Project Advisor to gain insight into the eligibility of your condominium loans earlier in the origination process. Watch this video to learn how Condo Project Advisor can streamline your condominium originations and help you close more condominium loans with confidence. You’ll find more valuable resources on our Condo Project Advisor webpage.
Last Paid Installment Due Date and UPB on Mortgages Sold for Cash with a Concurrent Transfer of Servicing (CTOS)
Beginning February 26, 2024 in response to feedback from Seller/Servicers, we’re implementing a new warning message in Loan Selling Advisor for loans sold through Co-Issue XChange for Cash.
When a Seller (the original Servicer) sells a loan to Freddie Mac through Co-Issue XChange for Cash with a Concurrent Transfer of Servicing, and the Freddie Mac Cash funding date is after the 10th of the month, and the borrower’s next payment is due the first of the following month, the Seller must deliver the ULDD data points as follows:
- Amortize the loan down by one principal payment and ensure Loan Acquisition Scheduled UPB Amount (Sort ID 385) reflects the same.
- Advance the ULDD Data Point Last Paid Installment Due Date (DDLPI) (Sort ID 440) to the first of the month after the loan’s funding month.
- Collect the next payment due from the borrower.
Our Guide will be updated in a future Bulletin to reflect these changes.
Critical Edits for Secondary Financing
Beginning March 18, 2024, Loan Selling Advisor will display a critical message on loans where the loan to value (LTV) ratio and total loan to value (TLTV) ratio match (indicating no secondary financing), yet the LTV and TLTV ratios differ in Loan Product Advisor® and Loan Quality Advisor® (indicating the presence of secondary financing). Refer to Guide Section 6302.34 and our January 12, 2024 article.
Loan Quality Advisor will implement the same purchase eligibility message for loans with Secondary Financing, beginning March 18, 2024.
ULDD Customer Test Environment Information
Are you ready for the ULDD Phase 4a updates and Phase 5 optional delivery period which begins on June 3, 2024? To make sure you have ample time to update your systems and test your integrations for the new requirements outlined in the ULDD September 12, 2023 announcement, we’re providing access to the Loan Selling Advisor pre-production customer test environment (CTE).
The pre-release testing period will be available from April 1, 2024 through June 17, 2024. Copy and paste this link into your web browser or bookmark it for future use:
https://las-uat3.fmappsuat.fmrei.com/lsp_uat3/las-sec/
Our production baseline CTE will be updated after the pre-release testing period ends. User credentials (user ID and password) for the pre-production CTE are the same for production baseline CTE. Sellers/Servicers or Software Partners can request access to our test environments at any time by contacting your Freddie Mac representative.
We will update the Loan Selling Advisor Online Help pages for ULDD Phase 4a Updates and Phase 5. We’ll continually update these resources as we get closer to our pre-release testing start date of April 1, 2024.