You asked for earlier access to – and a longer timeframe for – testing prior to the release of Uniform Closing Dataset (UCD) Phase 3 critical edits. Now you’ve got it – along with access to, and testing of, the new Qualified Mortgage (QM) Short Reset adjustable-rate mortgage (ARM) annual percentage rate (APR) data point in Loan Closing Advisor®.

As previously announced in the Freddie Mac and Fannie Mae (the GSEs) announcement on May 31, 2022, the UCD Phase 3 critical edits transition will be on May 1, 2023. To help you prepare for system impacts, Loan Closing Advisor will be available with new and revised warning messages for both Phase 3 critical edits and the QM Short Reset ARM APR data point on the following dates:

Deployment of Phase 3 Edits in Loan Closing Advisor Warning Edits Critical Edits
Customer Test Environment (CTE) October 13, 2022 November 7, 2022
Production October 22, 2022 May 1, 2023

You are strongly encouraged to complete transition activities ahead of schedule to ensure your organization’s readiness in advance of each phase.

Confirm with your software partners that you have the most up-to-date release supporting all UCD critical edits for Phase 3.

Phase 3 Feedback Message Document

To assist with Phase 3 testing and help you resolve errors in Loan Closing Advisor prior to the UCD Phase 3 critical edit transition May 1, 2023; we’re publishing the Loan Closing Advisor Feedback Message Document, v9. This spreadsheet contains a tab for Phase 3 UCD datapoints, a tab for the new QM Short Reset ARM APR data point and the Loan Closing Advisor warning error message codes and text that align. Also included in the spreadsheet are tabs for the Phase 1 and 2 messages.

What You Need to Know

On and after May 1, 2023, the following will be required in Loan Closing Advisor to be eligible for sale to Freddie Mac:

  • Compliance with all UCD Phase 3 Critical Edits according to the Critical Edits Matrix. 
  • The gse:QualifiedMortgageShortResetARM_APRPercent data point for all ARMs meeting the definition in the Single-Family Seller/Servicer Guide (Guide) Bulletin 2021-19. To help lenders prepare, the data point can be accepted in Loan Closing Advisor today. Please reference the UCD Specification Update Impact Memo for more information. 
  • An Overall UCD Requirement Status of “Satisfied."

Additional Available Resources

Ensure you are checking the Loan Closing Advisor and UCD pages for the most recent resources to help your organization prepare for upcoming changes:

 For more information on the UCD critical edits transition, visit the Freddie Mac UCD web page. Please contact your Freddie Mac representative for assistance or submit your questions to [email protected].