We’re making Loan Product Advisor® (LPASM) updates in May to improve your experience and provide more transparency and clarity – to help you make faster decisions. Check out the improvements that can help you get more accomplished in your day.

  • Improved Internal Revenue Service (IRS) Form 4506-T feedback message.
  • Expanded the required reserves calculation.
  • Updated critical message DQC0185.
  • Clarified collateral representation and warranty relief eligibility messaging.

Review the May LPA Release Notes document for full details. 

May LPA Feedback Message Updates

View the list of feedback message updates related to the May releases.

For access to the latest feedback message updates to our tools, bookmark the Freddie Mac Loan Advisor® Resources and Learning web page.

AIM for Self-Employed Enhancement: Income Tax Extension Capability

LPA asset and income modeler (AIM) for self-employed is being updated to include the capability of assessing a loan with an income tax extension filing. The assessment will include an automated analysis to determine if the documentation supports continued income stability when older tax return(s) are used to underwrite the loan. This is a Single-Family Seller/Servicer Guide requirement. You can use the results of the assessment throughout the underwriting process.

This update is effective for loans with initial submission dates on and after August 1, 2021.

This enhancement provides:

  • Early visibility into Freddie Mac’s quality control perspective related to the self-employed income.
  • Ability to get results from the automated analysis to determine continued income stability when older tax return(s) are used.
  • Insight into Freddie Mac’s derived monthly self-employed income amount.
  • Loan-specific feedback messages detailing other requirements that must be met.
  • Help to streamline the loan origination process and reduce origination costs.

How It Works

  1. Upload the required number of tax return years to your third-party service provider* (LoanBeam), as normal. Make sure to include IRS Form 4868 for the year on extension.
  2. Once you submit the loan to LPA using the unique reference number, AIM will perform a personal tax liability analysis to determine if documentation supports continued income stability.
  3. The results of the assessment will be returned on the LPA Feedback Certificate with targeted informational feedback messages specific to your scenario.

*This enhancement will, initially, only be eligible with LoanBeam to start. Plans for participation by CoreLogic and LoanCraft are underway, and we will communicate that information at a later date.