Loan Selling Advisor November 2023 Updates
Enhancements to Loan Selling Advisor® can make your job easier and help you more efficiently deliver loans. We’re here to support your loan delivery with these latest updates and a few reminders from previous announcements.
Pricing and Execution
New Feature in Cash Rate Sheet
Effective October 23, we added a new feature to the Loan Selling Advisor cash rate sheet to enhance your overall cash pricing experience. An “add template” feature now allows you to save your selection. This new enhancement will save you time and mitigate risk by eliminating duplicative processes associated with requesting cash rate sheets. Get further information and training materials here.
Rules and Edits
Recent Uniform Loan Delivery Dataset (ULDD) Phase 4a and Phase 5 Updates
Freddie Mac and Fannie Mae (the GSEs) are updating the Uniform Loan Delivery Dataset (ULDD) to align with current GSE requirements and support the continued improvement of loan delivery standards. The joint GSE announcement details updates that align with the Enterprise Credit Score and Credit Reports Initiative requirements, the new Uniform Appraisal Dataset (UAD) 3.6 and the Single-Family Seller/Servicer Guide updates for Sellers and business critical needs. It also provides an overview of the Phase 4a updates.
For additional information, please refer to the Summary of ULDD Phase 4a Updates and Phase 5 Specification and the ULDD webpage. A Client Test Environment (CTE) will be available and announced in the coming months.
Home Mortgage Disclosure Act (HMDA) Data Points Retirement
In May 2019, we announced the retirement of HMDA data points (ULDD Sort IDs 608, 609 and 610) and replacement with the new datapoints (ULDD Sort IDs 608.3, 609.1 and 610.5).
Effective October 30, the ULDD Phase 3 old format for these three specific ULDD datapoints is no longer accepted. You must now use the new format for all newly imported loans.
For more details, see question #5 under “Demographic Information” in the ULDD FAQs.
Import of Document Custodian and Servicer Identifiers
We’re committed to saving you time and energy when you assign Document Custodians and Servicers in Loan Selling Advisor®.
Today, when you import and allocate loans to a contract, Loan Selling Advisor assigns the default Servicer and Custodian to each loan, except eNotes; and for eNotes, you must manually assign an eNote Document Custodian to each loan.
In the near future, you will no longer be required to manually assign an eNote Document Custodian to each loan. Instead, we’ll enhance Loan Selling Advisor on January 29, 2024, to provide the ability to import Document Custodian and Servicer identifiers at delivery. We’ll provide more information in the coming months.
Other updates and reminders
Reminder for Delivery of ADU Loans
On June 1, 2022 in Single-Family Seller/Servicer Guide (Guide) Bulletin 2022-11, we announced our policy for loans originated using the expansion of our accessory dwelling unit (ADU) policy. This is a reminder that Sellers must continue to deliver the valid value of "J66" for Uniform Loan Delivery Dataset (ULDD) data point Investor Feature Identifier (Sort ID 368) for loans secured by a 1-unit primary residence if rental income generated from the ADU is used to qualify.
Pricing and Execution
Pre-release Client Testing for Enhancements to Mandatory Cash Contracts and Cash Rate Sheet Loan Selling Advisor Changes
As previously announced, effective December 11, we’re enhancing capabilities in Loan Selling Advisor when creating or modifying a Mandatory Cash Contract. In addition, we are altering existing Cash Rate Sheet screens to match the Take Out Contract screens in Loan Selling Advisor.
To ensure you have ample time to update your systems and test your integrations, we’re providing access to a Loan Selling Advisor pre-release CTE starting November 20. Use the CTE to try out the enhanced cash contract and rate sheet capabilities and see what’s changed.
Before you start testing, please make sure to review the following:
Information on Accessing Pre-Release CTE
- Testing and support are available beginning November 20, from 9 a.m. – 5 p.m. EST Monday through Friday except for Freddie Mac holidays. Use your existing user acceptance testing (UAT) credentials (user ID and password) to access this test environment. If you have not received your test credentials and need assistance, please contact your Freddie Mac representative.
- Access our pre-release CTE here or copy and paste the following link into your web browser: https://las-uat3.fmappsuat.fmrei.com/lsp_uat3/las-sec/
Loan Delivery Rules and Edits
New Critical Edits to Enforce Existing Guide Requirements
Effective December 12, new critical edits will be introduced in Loan Selling Advisor to enforce existing Guide requirements for GreenCHOICE Mortgages® and mortgages secured by properties subject to income-based resale restrictions.
Critical edits will enforce the requirements for use of proceeds to finance energy and/or water efficiency improvements or to pay off existing outstanding energy and/or water efficiency related debt in Guide Section 4606.4, Purchase and "no cash-out" refinance Mortgage requirements.
Mortgages Secured by Properties with Income-based Resale Restrictions:
Critical edits will enforce the requirements for ineligible mortgages secured by a property subject to income-based restrictions in Guide Section 4406.2, Special requirements for all Mortgages secured by properties subject to income-based resale restrictions.
Loan Selling Advisor Warning and Critical Edits Comparing Data in Loan Product Advisor® (LPASM) and Loan Quality Advisor®
New critical purchase eligibility edits in Loan Selling Advisor for loans assessed by LPA and Loan Quality Advisor have a new effective date. Read more about previously announced (August 18 and October 12) updates and please note the new effective date for the Purchase Price Amount and reminder on the remaining effective dates below and reminder on the remaining effective dates below
- Purchase Price Amount (net sales concessions) – Warning edit remains effective. Critical edit to be effective December 4, 2023.
- Project Legal Structure Type – Warning edit effective October 2, 2023, Critical edit effective January 1, 2024.
- Secondary Financing – Critical edit to be implemented later this winter.
New and enhanced APIs for Selling
Enhanced Guarantor Settlement Purchase Statement API
On December 1, the Guarantor Settlement Purchase Statement application programming interface (API) goes live. This API streamlines your manual tasks with fast, easy access to Guarantor purchase settlement statement data, including funding details and loan-level Credit Fees. Key features include:
- Integrated access to loan-level Guarantor purchase statement data.
- Provides all loan-level purchase statements, funding details and applicable Exhibit 19 fees in a single response file.
- Access to data by simply submitting a seller identifier and purchase date.
- Alternative method to existing Loan Selling Advisor® Guarantor purchase statement data export capabilities.
All clients will be able to access this API in our Developer Portal when it goes live, however reach out to your Freddie Mac representative today to get further details on the technical specification, and how to start preparing to integrate.
Enhanced Cash Settlement Purchase Statement API
On December 14, you’ll see enhancements to the Cash Settlement Purchase Statement application programming interface (API). There will be additional data points included in the response file to allow for a more efficient reconciliation of all loans purchased for Cash. You can expect to see the following new attributes:
- Servicer Name
- Escrow Funds
- Collected at Closing
- Last Paid Installment Due Date
- Scheduled First Payment Date
- Servicing Option
Other updates and reminders
“Release Spotlight” Page
To share more about upcoming changes in Loan Selling Advisor, on November 14, Freddie Mac’s Client Education Services Team will launch a new Loan Selling Advisor “Release Spotlight” page. This spotlight is intended as a preview for clients to see upcoming changes and “before” and “after” examples.
Change to Loan Selling Advisor Weekend Hours of Operation
Effective November 20, the standard hours of operation for Loan Selling Advisor will change from 8 a.m. – 9 p.m. ET Monday through Saturday, to 8 a.m. – 9 p.m. ET Monday through Friday and 8 a.m. – 5 p.m. ET on Saturday.
This change will allow us additional weekend hours to continue to release enhancements and improve the resilience of the tools you rely on. Thank you in advance for your understanding.
Refer to our Technology System Status webpage for the most up-to-date information about the status of our technology tools. We encourage you to bookmark this page for future reference.
Improved Import Loan Processes When You Evaluate Unallocated Loans
In March, we announced our improved validation messages in Loan Selling Advisor when you import new loans and are allocating the loans to Cash Contracts. You’ll also see these same improvements when you import and allocate new loans to Guarantor Contracts. This will continue to improve your loan delivery experience by ensuring your validation messages are clearer, more accurate and actionable. Please note, initially this was scheduled to go-live on December 4 however, the date for this enhancement has been revised and is now December 11.