Loan Closing Advisor FAQ
The information on this page is not part of, and is not a replacement or substitute for, requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and other Purchase Documents.
General
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 the updated PDF be submitted as well.
What are my options for submitting the UCD XML file?
Access the Loan Closing Advisor graphical user interface (GUI) and upload UCD XML files for evaluation against Loan Closing Advisor rules, and view and export results. A system-to-system (or direct) 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?
Users are locked out after five failed attempts. Resubmission can be attempted 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 warning and critical feedback messages on the UCD data quality including completeness, consistency and accuracy of certain calculated values. Warning and critical messages are returned when UCD data quality is incomplete, inconsistent or inaccurate. 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?
System Access Methods
How do I obtain access to Loan Closing Advisor?
Request access to Loan Closing Advisor by:
- GUI access – Visiting the Loan Closing Advisor webpage and click on the "Get Access" button.
- System-to-system access – Contacting your Freddie Mac representative for credential assistance.
How does an organization get access to Loan Closing Advisor through system-to-system?
Contact your Freddie Mac representative or the Customer Service (800-FREDDIE) for credential assistance.
Is there a Loan Closing Advisor system-to-system specification available? If so, how do I obtain the specification? - UPDATED
Yes. The Loan Closing Advisor System-to-System Web Services Technical document is available on the Freddie Mac Developer Portal or upon request. Please contact your Freddie Mac representative or the Customer Service (800-FREDDIE) to request a copy
If you access Loan Closing Advisor directly through Freddie Mac Gateway, you will always be on the latest version.
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 system-to-system integration work?
Loan Closing Advisor system-to-system is a web service call that uses Simple Object Access Protocol (SOAP) over Hypertext Transfer Protocol Secure (HTTPS) protocol, allowing data to be encrypted in transmission. The calling system connects to Loan Closing Advisor's GUI via the required parameters. The GUI 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.
Customer Test Environment
How do I obtain access to the Loan Closing Advisor customer test environment (CTE)?
Contact your Freddie Mac representative or the Customer Service (800-FREDDIE) for access to Loan Closing Advisor CTE. Once you receive your login credentials, You may access Loan Closing Advisor CTE directly through Freddie Mac Gateway.
Who can I contact for assistance with the Loan Closing Advisor CTE?
Contact your Freddie Mac representative or the Customer Service (800-FREDDIE) for access requests or acceptance testing. If you have questions on system integration, email: [email protected].
Mortgage Products
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. 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?
To determine if a loan is Exempt from Regulation Z ATR requirements, the following UCD datapoints must be submitted:
- AbilityToRepayMethodType=Exempt
- AbilityToRepayExemptionReasonType=PropertyUsage
Refer to the Single-Family Seller/Servicer Guide (Guide) Bulletin 2021-19, for the two classifications of exempt loans.
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 within their legal or compliance functions on calculation requirements to comply with Regulation Z Total Loan Amount and Regulation Z Total Points and Fees Amount. These data points are used by Freddie Mac to evaluate points and fees compliance (or eligibility) requirements.
How do I submit a construction to permanent loan to Loan Closing Advisor? UPDATED
- For a single-close (without an executed modification), the Closing Disclosure is required. If a modification has been completed prior to permanent financing, the terms of the loan modification become the permanent financing and therefore, an updated Closing Disclosure is not required.
- For a two-close, the Closing Disclosure that discloses the terms of the permanent financing must be included in the UCD file submission.
- For properties where the borrower does not own the land prior to closing of interim construction financing, the loan is classified as a Purchase transaction. If the borrower already owns the land, the loan is classified as a Non-Seller (refinance) transaction.
Reference the UCD v1.5 Implementation Guide pages 52-55 and UCD v2.0 Implementation Guide section H. Construction Loan Data for UCD guidance on construction to permanent loans submissions.
Where do I add the Very Low Income Purchase (VLIP) credit in the UCD XML file? UPDATED
The borrower VLIP credit should be submitted in 12.6 Other Credit on the CD and in Loan Closing Advisor.
For mortgages meeting requirements of Bulletin 2024-A and Home Possible® Guide Chapter 4501, the following UCD data points must be submitted to Loan Closing Advisor:
UCD | UCD Unique ID | Valid Value |
|---|---|---|
Closing Adjustment Item Type | 10.042 | Grant |
Closing Adjustment Item Amount | 10.039 | $2,500.00 |
Full Name (Legal entity Name) | 10.308 | The lender’s name as it appears on the note. |
Loan Delivery
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 is recommended sending the updated PDF as well.
Which version of the UCD Specification should be used for production deliveries? [NEW]
The updated UCD v2.0 Specification was published September 2024. To allow for the industry to adopt the new format and requirements within their systems and processes; Sellers may continue to deliver- only UCD v1.5 Specification (or lower) to Loan Closing Advisor until the UCD v2.0 transition period begins September 29, 2025. During the transition period, Loan Closing Advisor will accept UCD XML files based on UCD v2.0 or v1.5 (or lower). Freddie Mac and Fannie Mae (the GSEs) will continue to accept UCD XML files based on UCD v1.5 (or lower) until the end of the transition period (the mandate date). Refer to the UCD webpage for detailed information.
Are there critical data elements that must be present for Loan Closing Advisor to assess my UCD XML file?
Yes. The following data 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.
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.
Results
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.
The feedback provided by Loan Closing Advisor indicates whether the loan is/is not eligible for purchase by Freddie Mac. A UCD “Satisfied” status indicates the data meets UCD spec requirements. Lastly, Seller should confirm data accuracy based on warning and critical feedback messages before selling the loan to Freddie Mac.
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
- Satisfied (Without a Closing Disclosure PDF)
- Not Satisfied
If a submission contains errors, where do I correct those errors?
Submission errors must be corrected 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 business and technical feedback messages (MISMO XPath) in the GUI and system-to system access methods. The feedback certificate only displays business messages; 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.
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.
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.
Correspondent
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?
To use Loan Closing Advisor, Freddie Mac requires users have a third-party originator number.
- Visit the Freddie Mac Gateway