UPDATED: This article has been updated to inform you that on December 19, 2024 we revised the “Data Comparison Edits” message included in this article.

Check out this fall’s newest updates to Loan Selling Advisor®. Our October news includes enhancements to improve your loan delivery processes. Topics include:

  • Cash-Released XChange®
  • ULDD
  • Best Efforts Super Conforming
  • Cash Contract 120-day Extensions 
  • Mission Score Exports
  • CHOICERenovation® Mortgages Update
  • Loan Delivery Purchase Eligibility Rules
  • Import Loan Enhancements

And more.

NOW LIVE

Marlin Mortgage Capital, LLC’s Sub-Servicer in Cash-Released XChange has Changed

Effective September 16, the sub-servicer for Marlin Mortgage Capital LLC in the Cash-Released XChange program is now Valon Mortgage.

Marlin Mortgage Capital’s Freddie Mac Servicer ID number is now #142838. Most of its servicing transfer instructions have also changed. We’ve updated the Cash-Released XChange User Guide to reflect these changes.

Please note, if you excluded Marlin Mortgage Capital #187870 from your list of available servicers prior to September 16, Marlin Mortgage Capital #142838 will automatically be excluded. Make any changes to your servicer preferences in the XChange CenterSM. Please contact your Freddie Mac representative or the Customer Support Contact Center (800-FREDDIE) with any questions.

ULDD Updates & Resources

Guide Announcements

The October 2 Single-Family Seller/Servicer Guide (Guide) Bulletin announced delivery instructions and Uniform Loan Delivery Dataset (ULDD) revisions:

  • Updated implementation notes to follow the Home Mortgage Disclosure Act (HMDA) regulation for Price Lock Datetime (Sort ID 311).
  • Updates to CHOICERenovation mortgages and supporting Loan Program Identifiers.
  • Updated delivery instructions for HeritageOne® mortgages.

For the complete list of updates and additional information, please refer to the Guide Bulletin 2024-13 and the ULDD Revisions Page.

New ULDD / UAD Job Aid

On September 24, the ULDD job aid for the alignment with Uniform Appraisal Dataset (UAD) 3.6 was published. This is a joint Freddie Mac and Fannie Mae (the GSEs) reference guide to help with mapping between ULDD and the redesigned UAD. The job aid is available on the ULDD Technical Resources webpage.

COMING SOON

Best Efforts Contract Modernization and Cash Contract Extensions

Effective October 28, Freddie Mac is enhancing the Best Efforts and Mandatory Cash Contract execution options. Cash Sellers will soon have additional flexibilities intended to streamline the way they manage their Cash contracts. Additional flexibilities include:

  • Best Efforts and Mandatory Cash Contract extensions: Sellers may extend the contract an unlimited number of times, if the total extension period plus the original contract term does not exceed 120 days and each extension is less than 90 days beyond the current date.
  • Best Efforts relocks: With the enhancement to the contract extension process, we’ll retire the contract relock feature for Best Efforts.
  • Super conforming mortgages eligible under Best Efforts: Sellers will be able to allocate super conforming Mortgages to Best Efforts Contracts.
  • Enhanced Best Efforts Contract screens: Updated screens with more flexible workflows will help Sellers intuitively navigate contract options and increase operational efficiency when doing business with us.

Additional resources:

To help you prepare for these changes, please also visit the Loan Selling Advisor, Release Spotlight for Best Efforts. You’ll learn more about the updated workflows, view before and after examples of the Contract screens, and more.

New $300K Low Loan Balance (LLB) Cash-Specified Payup

Beginning October 28, you’ll have a new cash execution opportunity for your 30-year fixed rate mortgages with original note amounts that are greater than $275,000 and less than or equal to $300,000. This new Cash-Specified Payup applies to both Mandatory and Best-Efforts Executions. 

You’ll see the new cash-specified payup when you generate a cash rate sheet or take out a cash contract in Loan Selling Advisor and when you submit a request through either our Cash Pricing or Cash Committing application programming interfaces (APIs). 

Loan Selling Advisor’s Online Help and other cash-specified payup resources will be updated soon to reflect the new cash-specified pay up type:

Export Mission Score Loan Level Data Plus New Mission Score Resources

In August 2024, Freddie Mac introduced a new capability in Loan Selling Advisor to select a Mission Score Cash Specified Pool Type and potentially receive a payup on these types of mortgages. By making Mission Scores available, you may benefit from additional best execution opportunities. Check out the new Loan Selling Advisor Release Spotlight that features system changes for the Mission Index Score.

Effective October 28, you’ll be able to create customized datasets to export the Mission Score from Loan Selling Advisor by selecting this attribute from the Summary dataset. The Mission Score value on a loan will be available for export after the loan is saved in Loan Selling Advisor. The new Mission Score attribute may be added to an existing or created in a new customized dataset at any time. By providing the capability to export the Mission Score, you’ll be able to more easily identify loans that are eligible for Mission Score payups.

To learn more about the changes, refer to these updated resources:

CHOICERenovation Mortgage Updates Available for Mortgages with Settlement Dates on or after November 25

To reduce barriers encountered by Sellers in originating CHOICERenovation Mortgages, in the October 2 Guide Bulletin 2024-13, we have updated our policies, for certain scenarios:

  • Outstanding liens related to the renovations 
  • Borrowers who rent another property during the renovations
  • Borrower who is also the licensed contractor completing the renovations
  • Extensions for completion of renovations

We are also introducing a new Loan Program Identifier that supports the updates to CHOICERenovation Mortgages. 

The ULDD Data Point Loan Program Identifier (Sort ID 404) value “CHOICERenovation In Progress” will be available for use November 25.  

  • After November 25, 2024, the use of Loan Program Identifier “Renovation” in conjunction with any CHOICERenovation Mortgage will not be accepted at delivery.
  • After March 31, 2025, “CHOICERenovation Mortgage With Recourse” value will not be accepted at delivery. 

To remain aligned with Loan Selling Advisor, Loan Product Advisor® (LPASM) and Loan Quality Advisor® will also be updated with the new “CHOICERenovation In Progress” Loan Program Identifiers.

Purchase Eligibility Edits

Application Date Reasonableness

On July 29, we announced a new critical purchase eligibility edit will be added to Loan Selling Advisor if ULDD Data Point Application Received Date (Sort ID 224) is more than two years before current date. The new effective date of the edit is November 1, and the edit has been revised, so that the critical purchase eligibility edit will be received if ULDD Data Point Application Received Date (Sort ID 224) is more than two years before the Note Date, the modification date for Seller-Owned Modified Mortgages, the conversion date for Seller-Owned Converted Mortgages, or the Effective Date of Permanent Financing for Construction Conversion and Renovation Mortgages.

Cash-Released XChange Loan Level Credit Score

Effective November 1, a critical purchase eligibility edit will be introduced in Loan Selling Advisor to ensure compliance with our Guide Section 5203.2, which states for mortgages sold through Cash-Released XChange, the Seller must deliver ULDD Data Point Loan Level Credit Score Value (Sort ID: 251) regardless of whether the mortgage is originated through LPA or not. There are unique exceptions in which a borrower’s credit impairment status may prevent the delivery of the credit score value. Ensuring accurate delivery in Loan Selling Advisor helps to ensure a smooth transfer of servicing between the Transferor and Transferee Servicer after the Freddie Mac funding date. To understand all of our ULDD requirements, especially those related to Cash-Released XChange, review our Guide Section 6302.26 (b)(v).

CHOICERenovation Mortgages

Effective November 25, critical purchase eligibility edits will be introduced in Loan Selling Advisor to enforce the requirements in Guide Chapter 4607, CHOICERenovation Mortgages.  

CHOICEHome Property Valuation Form Type

Effective November 25, a critical purchase eligibility edit will be introduced in Loan Selling Advisor to enforce the requirement in Guide Section 5703.16(h), Appraisal requirements for Mortgages secured by a CHOICEHome, that a Manufactured Home Appraisal Report (Form 70B) must be completed for a mortgage secured by a CHOICEHome.

LPA  First Submission After Note Date

Effective February 3, 2025, a critical purchase eligibility edit will be introduced in Loan Selling Advisor to enforce the requirement in Guide Section 5101.1(b), Loan Product Advisor Mortgages, that, for a mortgage to qualify as a LPA mortgage, it must be submitted to LPA no later than the note date. However, for construction conversion and renovation mortgages must be submitted to LPA no later than the effective date of permanent financing, and (ii) Seller-owned modified mortgages that are Home Possible® mortgages must be submitted to LPA no later than the modification date.

New Indicator When Importing and Allocating Loans to Contracts

Effective November 25, you’ll have a new option when importing and allocating loans to contracts that powers up your process and gives you more control when managing Cash contract balances.

Upon import and prior to initiating the process to allocate loans to a contract, the system will check to see if the sum of all the loans’ unpaid principal balance (UPB) is less than or equal to the remaining contract balance: 

  • Select the checkbox to stop the import and allocation process and remove loans on your own.
  • If the check box remains unselected, Loan Selling Advisor will automatically select the loans to allocate from your import file and return errors on loans that were not able to be allocated.

These features aim to ensure better control during the loan modification and loan-to-contract allocation process.

Test this feature in our Pre-Release Customer Test Environment (CTE) from November 4 to November 22, with the Production Baseline CTE available from December 9. 

Redesign of the View Import Results Screens

The View Import Results screens will be updated to enhance user experience and simplify how you track loan data submissions. Updates include a simplified layout, quick filters for viewing import files by status and new export capabilities for import and allocation errors.

Get ready for a new look and feel as well. Navigation and simplified access to some options are changing, including removing the option to View/Modify Loan from the Product Errors view. You may continue to View/Modify Loan through existing processes such as Loan Pipeline and Loan Selling Advisor Homepage.
 
A new option to return to Best Efforts Import Results will also be added.

Test these exciting features in our Pre-Production Customer Test Environment (CTE) between November 4 and November 22. The new features will also be available when we upgrade the Production Baseline CTE starting December 9.

Data Comparison Edits

To improve data consistency between LPA and Loan Selling Advisor, we’ll introduce critical purchase eligibility messages when loan delivery data does not match with data submitted in LPA.  

This will be a multi-phased effort as we work to ensure consistency between our underwriting and loan delivery systems. In our first phase, effective December 16, we will compare the following ULDD Data Points (Sort ID) in Loan Selling Advisor with their equivalent in LPA:

  • Construction Method Type (Sort ID 51) Corrected December 19, 2024 to remove Construction Method Type, which will be implemented at a later date.
  • Purchase Price Amount (Sort ID 195)
  • Total Liabilities Monthly Payment Amount (Sort ID 290)
  • Total Monthly Income Amount (Sort ID 291)
  • Refinance Cash Out Determination Type (Sort ID 294)
  • Loan Purpose Type (Sort ID 315)
  • Note Amount (Sort IDs 319, 349, 474)