Loan Closing Advisor FAQ
What is Loan Closing Advisor®?
Loan Closing Advisor is the Freddie Mac tool that collects and validates the Uniform Closing Dataset (UCD) in XML format. All loans must be submitted to Loan Closing Advisor and receive a UCD “Satisfied” status to be eligible for sale to Freddie Mac. Loan Closing Advisor assesses the data against the UCD specification, checking for the completeness, validity and accuracy of certain calculated values, as well as consistency of the data. You can assess a loan through Loan Closing Advisor as many times as needed throughout the loan process.
When did Freddie Mac require the use of Loan Closing Advisor?
We require the use of Loan Closing Advisor and submission of the UCD XML file for all loans we purchase with a note date on or after September 25, 2017. Loan Closing Advisor must be used to submit the UCD XML file and Closing Disclosure PDF at or before the time of loan delivery.
What is the requirement for delivering the Closing Disclosure PDF?
The final Closing Disclosure PDF is required to be included in a Loan Closing Advisor submission on or prior to delivery. As a best practice, if a revised Closing Disclosure is issued to the borrower and an updated UCD XML file is resubmitted to Loan Closing Advisor, we recommend you send the updated PDF as well.
What are my options for submitting the UCD XML file?
Access the Loan Closing Advisor web-based GUI and upload UCD XML files for evaluation against Loan Closing Advisor rules, and view and export results. A system-to-system (or direct) integration is also available; allowing you to assess loans and receive results via direct system integration.
How many times can I submit the file with the wrong password before getting locked out?
You'll be locked out after five failed attempts. You may resubmit after the 15-minute account lock-out period.
Is the file format the same for Freddie Mac and Fannie Mae?
Yes. Both Freddie Mac and Fannie Mae accept an UCD XML file that uses the MISMO v3.3 reference model and conforms to the published UCD specifications.
Does Loan Closing Advisor accept loans not being sold to Freddie Mac?
Yes. Loan Closing Advisor will accept UCD data for loans even if the seller eventually decides not to deliver them to Freddie Mac. Loan Closing Advisor will also accept loans that are underwritten by multiple automated underwriting systems (AUS).
What type of messages are returned from Loan Closing Advisor?
Loan Closing Advisor returns actionable feedback messages on the UCD data quality including completeness, consistency and accuracy of certain calculated values. Loan Closing Advisor also provides loan eligibility information as it relates to closing data, providing greater purchase certainty and reducing repurchase risk.
How can I find a technology solution/vendor to assist with creating and delivering my UCD file?
For a list of verified vendors, check the Freddie Mac verified vendor list.
- How do I obtain access to Loan Closing Advisor?
How does an organization get access to and verify Loan Closing Advisor system-to-system?
Contact your Freddie Mac representative or the Customer Support Contact Center (800-FREDDIE) for credential assistance.
Is there a system-to-system specification available? If so, how do I obtain the specification?
Yes. The Loan Closing Advisor System-To-System Web Services Technical Document is available to Freddie Mac customers upon request. Please contact your Freddie Mac Account Representative or the Customer Support Contact Center (800-FREDDIE) to request a copy.
What is the current version of Loan Closing Advisor system-to-system?
The current version of Loan Closing Advisor system-to-system is version 3.2.
How does the system-to-system integration method work?
Loan Closing Advisor system-to-system method is a web service call that uses SOAP over HTTPS protocol, allowing data to be encrypted in transmission. The calling system connects to Loan Closing Advisor's web service via the required parameters. The Loan Closing Advisor web service is a synchronous service with a single operation called Evaluate Loan. This operation accepts a single loan in the UCD format and assesses it for data quality and eligibility, returning the results of the evaluation in the form of an XML payload.
How do I obtain access to the Loan Closing Advisor customer test environment (CTE)?
Contact your Freddie Mac representative or the Customer Support Contact Center (800-FREDDIE) for access to Loan Closing Advisor CTE. Once you receive your login credentials, enter the following URL into your browser: https://las.fmrei.com/lsp_cte/las-sec/.
Who can I contact for assistance with Loan Closing Advisor CTE?
Contact your Freddie Mac representative or the Customer Support Contact Center (800-FREDDIE) for access requests or acceptance testing. If you have questions on system integration, email: [email protected].
What mortgage types can I submit to Loan Closing Advisor?
All loans being sold to Freddie Mac are required to be submitted to Loan Closing Advisor. You can submit all mortgage types (Conventional, FHA, VA) to Loan Closing Advisor. The UCD is required for all loan types.
How do I identify a loan exempt from Regulation Z’s Ability to Repay (ATR) requirements in the UCD XML file?
Per the Single-Family Seller Guide Bulletin 2021-19, there are two classifications of Exempt loans:
- TILA Exempt Mortgage: A TILA Exempt Mortgage is a mortgage exempt from TILA and, as such, is exempt from the ATR requirements in Regulation Z. TILA Exempt Mortgages include business purpose loans as defined in 12 C.F.R. § 1026.3.
- ATR Exempt Mortgage: An ATR Exempt Mortgage is a mortgage that is exempted, within the ATR rule in 12 C.F.R. § 1026.43(a)(3), from the ATR requirements in Regulation Z.
The file should be submitted in UCD with the following data points if the loan is classified as Exempt:
How do I resolve Loan Closing Advisor errors related to calculating points and fees?
Lenders should correct files in the source loan origination system (LOS) and resubmit to Loan Closing Advisor. Sellers should seek guidance from their legal or compliance teams on how to properly calculate the Regulation Z Total Loan Amount and Regulation Z Total Points and Fees Amount, which Freddie Mac uses to determine whether the loan meets our points and fees requirements.
Is a feedback certificate available?
Yes. You can view and print the Loan Closing Advisor feedback certificate (with or without feedback messages). For the system-to-system method, the response file can include embedded feedback certificates in PDF format, or you can use our stylesheets to apply to the XML response to display the feedback certificate at the summary and detail levels.
Is delivery of the UCD required to sell the loan to Freddie Mac?
Yes. Freddie Mac requires submissions of the UCD XML file along with the embedded Closing Disclosure PDF through Loan Closing Advisor for all loans eligible for sale to Freddie Mac. For all submissions that do not include the Closing Disclosure (PDF) along with the UCD XML file, a critical message will display in Loan Selling Advisor®.As a best practice, if a revised Closing Disclosure is issued to the borrower and an updated UCD XML file is resubmitted to Loan Closing Advisor, it’s recommended sending the updated PDF as well.
Are there critical data elements that must be present for Loan Closing Advisor to assess my UCD XML file?
Yes. The following are needed to assess your UCD XML file:
- Loan Purpose Type
- Loan Identifier Type (Lender Loan)
- Loan Identifier (Lender Loan ID)
- Document Type
- Document Type Other Description
- MIME Type Identifier*
- Object Encoding Type*
*When the Closing Disclosure PDF is included.For further information, please review the UCD Implementation Update.
Does the transaction ID generated from Loan Closing Advisor need to be entered in Loan Selling Advisor when the loan is delivered?
No, the transaction ID is not required as an input in Loan Selling Advisor when a loan is delivered.
What is the relationship between Loan Closing Advisor and Loan Selling Advisor?
Loan Selling Advisor validates that the UCD XML file was submitted to LCLA and received a “Satisfied” status.
Will Freddie Mac purchase my loan if the UCD XML file has errors?
The feedback provided by Loan Closing Advisor indicates whether Freddie Mac will (or will not) purchase your loan. If you receive a UCD satisfied status you have met the UCD requirement. Assuming all purchase eligibility criteria are met; your loan can be sold to Freddie Mac.
If a submission contains errors, where do I correct those errors?
You should correct all errors in the LOS so that the submitted UCD XML file represents the data contained within the source system.
Do system-to-system integration and the web interface provide business and technical messages?
Loan Closing Advisor returns both business and technical feedback messages (MISMO XPath) in the GUI and system-to system access methods. The feedback certificate displays business messages only; however, an export of the evaluation results shows both business and technical messages. Loan Closing Advisor assesses the data against the UCD specification, checking for the completeness, validity and accuracy of certain calculated values, as well as consistency of the data.
How do I know if the UCD requirements are met?
Loan Closing Advisor provides an “Overall UCD Requirement Status” on the feedback certificate and the Loan Evaluation Summary page:
- Satisfied (Without a Closing Disclosure PDF)
- Not Satisfied
What is the difference between the “Overall UCD Requirement Status” and “This Submission’s UCD Requirement Status,” and can they be different?
Yes, the Overall UCD Requirement Status and This Submission’s UCD Requirement Status can be different. This Submission’s UCD Requirement Status only applies to that specific loan submission in Loan Closing Advisor.The Overall UCD Requirement Status is based on ALL submissions for a loan in Loan Closing Advisor. If there is at least one submission that is “Satisfied”, the Overall UCD Requirement Status will be “Satisfied”. If you have a PDF and your last submission is Satisfied, then the loan must have no critical edits in the submission. Loan Selling Advisor uses the Overall UCD Requirement Status to determine whether a loan has met the UCD requirement.
What would trigger a red eligibility message?
For submissions on or after June 25, 2018 that do not contain the Closing Disclosure PDF, a critical message is received and located in the Eligibility section. This Submission’s UCD Requirement Status is Not Satisfied.
Are there any file size limitations?
Yes. Generally, for one loan, the UCD XML file with the PDF attached is approximately 3.5MB. Ten UCD XML files can be submitted for assessment if the PDF file is attached, while a maximum of 2,500 UCD XML files can be submitted for assessment if the PDF file is not attached.
How far back in Loan Closing Advisor can we search?
At this point, there are no archive requirements. Some parameters are in place to limit the data that is returned. For example, when searching by Submission Date the user is limited to 62 calendar days and when searching by Closing Date the user cannot search beyond 30 calendar days.
Are correspondents able to submit loans through Loan Closing Advisor?
Yes. Correspondents can submit closing data, receive assessment results and export the submitted UCD XML file and embedded PDF documents.
- I'm a correspondent, what do I need to do to get access to Loan Closing Advisor?