Along with our March Loan Product Advisor® (LPASM) release, we’re announcing that later this year, we’ll start requiring trended credit data on credit reports for LPA submissions. Get more details below.

LPA Submissions to Require Trended Credit Data

Later this year, we’ll start requiring LPA submissions to include trended credit data. Trended credit data is expanded credit information reflecting historical tradeline data such as balances, scheduled payments and actual payments reported for each month over an extended period of time. Inclusion of this data will allow LPA to perform a more robust risk assessment.

We’ll announce more details about this requirement in a future Single-Family Seller/Servicer Guide (Guide) Bulletin, targeting Q2 2024. While there should be minimal preparation work for you on this, we do encourage you to begin working with your credit reporting companies and technical affiliates to prepare for this change.

Reminder: LPA Specification Retirement on March 1, 2024

LPA system-to-system (S2S) specification versions 5.0.06 and 5.1.00 will be retired as of March 1, 2024. If you’re still using these versions, make plans to update your systems to support either v5.2.00 or v5.3.00, or you won’t be able to submit new loans to LPA. Contact your Freddie Mac representative for additional guidance.

Note: Resubmissions on v5.0.06 or v5.1.00 will be accepted until September 9, 2024.

Get a first look at the new specification v5.4.00 that’s enhanced to help you make smarter decisions with minimized risk, stay up to date with industry standards and expand your underwriting capability to fulfill more homeownership opportunities.

March LPA Release

  • Expansion of LPA asset and income modeler (AIM) for income using employment data to include digitized paystub and W-2 data in the income assessment. Review associated feedback messages.
  • New and revised messages pertaining to AIM for income using tax data to provide additional details for users.
  • New error messages to reflect retirement of LPA S2S specification versions 5.0.06 and 5.1.00.
  • New message to support the restriction of non-occupying borrowers on cash-out refinances. This policy change was announced in Guide Bulletin 2023-24.
  • Revised message to support updated documentation requirements for trust income. This policy change was announced in Guide Bulletin 2024-1.

See more details in the March release notes and check out the full list of feedback messages effective in March.

Additional Feedback Message Updates Coming Soon

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

  • Texas Equity loans – Effective April 1, revised message to alert you that Texas Equity 50(a)(6) loans aren’t eligible for automated collateral evaluation (ACE) or ACE+ PDR (ACE plus property data report).