ULDD Phase 4a Testing now live in Pre-Production CTE

The initial testing period for ULDD Phase 4a – Optional Testing & Delivery Period 1 is here. The pre-production customer test environment (CTE) opened on June 2, 2022, to help you prepare for the optional delivery period in production beginning August 1, 2022.  Here is a recap of key info.

What’s the CTE?

The test environment is a unique pre-production CTE and is specifically for ULDD Phase 4a testing. It’s different from the standard Loan Selling Advisor production CTE that you use today to test the latest production code.

Am I required to test in the pre-production CTE?

No. However, if you plan to adopt ULDD Phase 4a before the mandate date, and/or need to be ready earlier for the optional delivery periods in August and September 2022, testing in our pre-production environment can help you get ready.  

If I don’t test in the pre-production CTE, will I be able to test in Loan Selling Advisor’s standard production baseline test environment?

Our standard production baseline test environments will be updated a few weeks after the production go-live dates, and you may opt to wait and test ULDD Phase 4a changes later in August or October of 2022. Contact your Freddie Mac representative about your timeline to determine when and where to test.

Other Important Information About Testing:
  • The Loan Quality Advisor® CTE for ULDD Phase 4a will open on July 1.
  • All loan origination system (LOS) software partners are required to be a ULDD Phase 4a verified software partner by December 31, 2022. 
  • Obtain verification test case materials from your software partner representative.
  • Contact your Freddie Mac representative or email [email protected] to schedule your verification and initiate the software partner verification process.
  • Review the Prepare for ULDD Phase 4a Conversion Job Aide and visit our ULDD webpage for the latest Phase 4a updates.

ULDD Phase 4a Related Technical Specification Updates

The implementation guide for Loan Selling Advisor Export has been updated to align with the ULDD Phase 4a changes to existing export file datasets and formats available from Loan Selling Advisor. You may need to create a customized version of the export dataset to include the new data points.

In addition, Sellers will be able to access a new Import Cash Contract Specification to review existing attribute updates in preparation of their import contract files. See the Revision History tab for a description of the June 2, 2022 revisions.

New Loan Selling Advisor Critical Edits to Support the Revised General Qualified Mortgage (QM) Rule

Effective June 12, new critical purchase eligibility messages are being added to Loan Selling Advisor to prevent the delivery of loans that exceed the allowable points and fees as indicated in Freddie Mac Single-Family Seller/Servicer Guide (Guide) Section 4202.6(c).

These changes are intended to ensure, based on Seller-provided data and related representation and warranties, that all loans purchased by Freddie Mac meet the Guide’s points and fees requirements applicable to both Exempt Mortgages and Ability to Repay (ATR) Covered Mortgages subject to the Revised General Qualified Mortgage (QM) Rule. Clients must ensure that the data in the Uniform Closing Dataset (UCD) XML file submitted to Loan Closing Advisor is true, complete, and accurate prior to loan delivery in Loan Selling Advisor. If there are inaccuracies in the closing data, clients must correct the data in the UCD XML file and resubmit the file to Loan Closing Advisor prior to delivery in Loan Selling Advisor.

The following new critical purchase eligibility error messages will be implemented in Loan Selling Advisor to support these requirements:

Critical Error Message
"Mortgage exceeds applicable points and fees limit"
"Points and fees cannot be validated; please reassess the mortgage at a later time."
"Points and fees cannot be validated due to missing Uniform Closing Dataset (UCD) data; please provide missing UCD data and resubmit in Loan Closing Advisor."

 

For additional information read Guide Bulletin 2021-17.