Close Out the Year with These Loan Selling Advisor Enhancements
It’s been a busy year in Loan Selling Advisor® – full of valuable enhancements to help simplify your loan delivery process. Now, we’re closing out 2022 with these recent updates and a couple of others that are right around the corner. Learn about what’s new and upcoming.
Early Pool Disclosure and 2-Day Settlement Cycle for Guarantor
As announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2022-18, when you sell for securities, you’re now able to publish pool data up to 15 days in advance of the security settlement date. This is in lieu of the standard 5-day settlement cycle for single-issue pools.
Disclosing pool data to investors and bond dealers earlier means you have more time and greater flexibility to trade your security when you’re ready. Early Pool Disclosure is available for all Single-Issue Guarantor fixed-rate and ARM contracts, including pools subject to Early Funding.
In addition, you’re now able to designate a 2-day Gold Rush® Settlement Cycle for Single-Issue Guarantor contracts. You’ll need to comply with the fixed income clearing corporation notification exception process as applicable when using a 2-day Settlement Cycle.
We have updated our Freddie Mac Settlement Dates for Securities Calendar. Loan Selling Advisor technical specifications will be updated soon to reflect the new eligible values for Settlement Cycle Days on Single-Issue Pools.
Want to learn more? Discover the benefits and see a Settlement Cycle example. Check out these Early Disclosure learning resources:
Get Cash-Specified Pricing for Best Efforts Rate Sheets and Commitments
Effective December 5, Freddie Mac is enhancing its best efforts cash pricing and contracting processes in Loan Selling Advisor and the Cash Pricing application programming interface (API). We have started offering cash-specified payup pricing on all eligible fixed-rate best efforts loans with Low Loan Balance (LLB) characteristics.
To take advantage of the best efforts payup, you must:
- Identify the Cash Specified Pool Type when taking out a best efforts contract.
- Deliver eligible loans into 15-, 20- or 30-year fixed-rate contracts. With these changes, you receive payup pricing with the all-in product level price when you run a rate sheet.
All fixed-rate mortgages within the best efforts contract must meet the requirements of the payup. A mortgage with an original loan amount that exceeds the contract amount associated with the contract’s LLB Cash Specified Pool Type cannot be delivered into the contract. Payups are eligible for the full contract period including contract extensions.
The applicable products and payup options for best efforts are now available in Loan Selling Advisor. The upcoming December 7 Guide Bulletin will reflect these new options. Also, check out the updated content in the General Requirements and FAQ on our website.
Loan Limit Values for 2023 Are Increasing by 12.21%
In line with the Federal Housing Finance Agency (FHFA) announcement, we’re increasing our maximum baseline conforming loan limit and high-cost area loan limit values.
FHFA's seasonally adjusted, house price index data indicate that house prices increased 12.21%, on average, between Q3 2021 and 2022. Therefore, the maximum baseline conforming loan limit values in 2023 will increase by the same percentage.
Loan Selling Advisor and our Selling APIs are updated as of December 5, 2022. If you take out a cash contract in December 2022 that has an expiration date on or after January 1, 2023, and are allocating a mortgage with an original loan amount that exceeds the 2022 loan limit values but is eligible under the 2023 loan limit values, you must enter a 2023 date in the “Requested Settlement Date” field.
Details can be found in the November 29 article and in the Guide on December 7.
Enhancements to Cash Settlement Purchase Statement API
Effective December 12, as announced in our November 8 article, we’re upgrading the Cash Settlement Purchase Statement API to a new version. You asked for it, and we’re delivering – new optional metadata to track your platform software version in each request. Improved feedback messages in JSON format will also help you identify when no loans have been funded for the requested date.
This API is your key to efficiency and speeding up your post funding reconciliation processes by replacing manual tasks with fast, easy access to cash settlement purchase statement data, including funding details and loan-level credit fees.
Want to learn more? Check out the Developer Portal today and learn how easy it is to build to and use this API.
Loan Selling Advisor Critical Edits
Critical Edits for ULDD Data Point
This is a reminder of our August and November announcements that effective January 3, 2023, Loan Selling Advisor will have a new critical edit to enforce the existing requirement that ULDD Data Point Total Monthly Income Amount (Sort ID 291) must equal the aggregate of ULDD Data Point Borrower Qualifying Income Amount (Sort ID 573) for all borrowers.