Q3 2023 Loan Quality Advisor Releases – Updates
The Q3 2023, Loan Quality Advisor® releases related to the First Time Homebuyer feedback message and Sales Contract vs. Concession Mismatch have been updated below:
The Q3 2023, Loan Quality Advisor® releases include a feedback message enhancement that adds an indicator for First Time Homebuyers on the Loan Quality Advisor feedback certificate, an updated Message Matrix for Loan Quality Advisor, new Loan Product Advisor® (LPASM) Data Compare rules for First Time Homebuyers, Purchase Price and Loan Program Identifiers, an announcement on HeritageOneSM mortgage, an update on Sales Contract vs. Concession Mismatch, Home Mortgage Disclosure Act (HMDA) data points retirement date changes and project legal structure type updates.
Feedback Enhancements UPDATED
Effective with this release, we’re improving Loan Quality Advisor feedback and export features for lenders by including an indicator for First Time Homebuyers. This new feature provides transparency if any borrowers on the loan are eligible for Credit Fee Caps.
Updated Message Matrix for Loan Quality Advisor
We added three new feedback messages to provide clarity around feedback certificate results. These will include informational/actionable messages to assist in driving workflow. View the updated message matrix link here.
Loan Product Advisor (LPA) Data Compare Results
We’ve added five new LPA Data Compare feedback messages to provide clarity around First Time Homebuyer, Purchase Price and Loan Program Identifier data:
1) Loan Program ID
- DC9001 - The Loan Program Identifier in Loan Quality Advisor doesn’t match the Loan Program Identifier in LPA - please review the data points for accuracy. If the Loan Program Identifier in Loan Quality Advisor is accurate, the loan must be resubmitted to LPA.
2) First Time Homebuyer Indicator
- DC7000 - The Borrower First Time Homebuyer Indicator is either not a valid value or doesn’t match the value(s) submitted in the last complete LPA transaction.
- DC7001 - A data comparison cannot be completed for the Borrower First Time Homebuyer Indicator because the Taxpayer Identifier Value(s) in Loan Quality Advisor does not match the Social Security Number(s) in LPA.
3) Purchase Price
- DC1001 - Purchase Price Amount in Loan Quality Advisor must be equal to the difference between Sales Contract Amount and Total Sales Concession Amount in LPA - please review the data points for accuracy. If the Purchase Price Amount in Loan Quality Advisor is accurate, the loan must be resubmitted in LPA.
- DC1002 - A data comparison cannot be completed for the Purchase Price Amount because the value is not submitted or equal to "0" in Loan Quality Advisor or LPA.
These new LPA Data Compare feedback messages are included in the updated Loan Quality Advisor Feedback Messages Customer Matrix.
Announced in Single-Family Seller/Servicer Guide Bulletin 2023-13 on June 7, 2023, HeritageOneSM mortgage is a new Duty to Serve negotiated offering, tailored to meet the needs of borrowers who are members of federally recognized Native American tribes purchasing property located in Native American tribal land.
Loan Quality Advisor support for HeritageOne will be available in the customer test environment (CTE) on September 21 and in production on October 2. You must obtain Freddie Mac’s written approval before selling HeritageOne loans to Freddie Mac.
Sales Contract vs. Concession Mismatch UPDATED
On June 27, 2023, we published a note that customers would receive a critical purchase eligibility edit when the purchase price of a property did not match the LPA sales contract net sales concession amount.
This note should have stated that this edit was a Warning only. This will remain a warning until November 6, 2023, after which it will result in a Critical edit.
HMDA Data Points Retirement Date Change
Effective October 2, 2023, the current format for the below three Uniform Loan Delivery Dataset (ULDD) data points will no longer be accepted. These data points will be retired and replaced with new formats. We encourage you to update your processes to reflect the changes.
Below is the list of data points being retired and their replacements:
|Original Format||New Format||MIMSO v3.0 Definition|
|Sort ID||MISMO v3.0 Data Point Name||Sort ID||MISMO v3.0 Data Point Name|
|608||Gender Type||608.3||HMDAGenderType||The borrower’s or interviewer’s statement about the borrower’s gender.|
|609||HMDAEthnicityType||609.1||No change||The borrower’s or interviewer’s statement about the borrower’s ethnicity as defined in the Home Mortgage Disclosure Act.|
|610||HMDARaceType||610.5||No change||The borrower’s or interviewer’s statement about the borrower’s race as defined in the Home Mortgage Disclosure Act. Up to 5 Race Types may be included per borrower.|
Project Legal Structure Type
Effective October 2, ULDD Data Point Project Legal Structure Type (Sort ID 47) must match the Uniform Loan Application Dataset (ULAD) Data Point Project Legal Structure Type (Unique ID 50.00) in LPA and ULDD Data Point Project Legal Structure Type (Sort ID 47) in Loan Quality Advisor – including when Project Legal Structure Type is blank.
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For quick access to the latest feedback message updates to our tools, bookmark the Freddie Mac Loan Advisor® Resources and Learning webpage.