We continue to enhance Loan Product Advisor® (LPASM) so you can have a powerful underwriting tool supporting you and your business. This month, we’ve expanded the number of eligible service providers for LPA asset and income modeler (AIM) to give you more choices and flexibility when verifying income and employment and we’ve enhanced our borrower cash flow assessment, helping to open the homeownership door for additional borrowers.

New and Updated Capabilities for AIM Service Providers

Automate the income and employment assessment to the fullest extent with the service provider updates below:

  • PointServ payroll data can now be submitted for borrower income assessment.
  • Truework is a new service provider for borrower income and employment assessment using payroll data.

No Credit Score Needed for Borrower Cash Flow Assessment

To help expand access to credit for more qualified borrowers, we’ve removed the requirement that at least one borrower must have a usable credit score for LPA to consider the borrower’s cash flow in the credit risk assessment.  

This enhancement will be effective for LPA submissions or resubmissions on or after May 5, 2024, as announced in Single-Family Seller/Servicer Guide Bulletin 2024-6. LPA will be updated to start returning new and revised feedback messages related to this policy change.  

Therefore, any submission or resubmission with an asset verification report of at least 12 months of account data for an eligible asset type will automatically be assessed for positive cash flow in LPA – which may upgrade a loan’s risk class from Caution to Accept and can only positively impact the credit risk assessment. 

Feedback Message Updates

  • Certain messages related to borrower cash flow assessment and rent payment history eligibility will now appear higher on the LPA feedback certificate to increase visibility.
  • New feedback messages to support revised conditionality for FHA Loan Lender and Sponsor Identifiers data points to identify lenders, depending on the role(s) they’re playing in the transaction.

For full details of the release, check out the May LPA release notes and full list of feedback messages effective in May.

Additional Feedback Message Updates Coming Soon

Here’s a preview of additional feedback messages that will be effective soon:

  • Property data report (PDR) submitted to Beyond ACE (bACE) API – Effective June 12, new messages to help you identify collateral R&W relief eligibility more clearly for property data report submissions using the Uniform Property Dataset to bACE API.
  • Incomplete processing – Effective June 23, new and revised messages to provide additional details on the Error page when a loan can’t be processed due to the submitted information not meeting certain minimum requirements.