Loan Collateral Advisor FAQ

Loan Collateral Advisor, a part of Freddie Mac Gateway, is a web-based tool that analyzes appraisal reports and provides a view of valuation risk at no cost to our customers.

Appraisal reports submitted to Freddie Mac through the Uniform Collateral Data Portal (UCDP^®) automatically flow to Loan Collateral Advisor for assessment. Loan Collateral Advisor performs assessments of the submitted data, leveraging multiple sources to assess the overall valuation risk of the appraisal. All results are returned within the tool, including a score that represents a view of valuation risk, and evaluation for collateral representation and warranty relief.

The tool gives you robust search capabilities and the ability to export data to view your appraisal submissions, trends and other information.

Loan Collateral Advisor can help you increase your operational efficiencies and reduce the risk of repurchases related to faulty appraisal reports. It provides real-time assessment feedback to help you manage and remediate appraisal issues. The clear and actionable feedback will help you identify potential issues earlier in the process, so you can determine the level of review required; thereby increasing your operational efficiency by allowing you to focus your resources on potential appraisal issues.

Loan Collateral Advisor is designed to help reduce risk of repurchases by providing you with information that can help you identify and address appraisal deficiencies before you deliver a loan to Freddie Mac.

Loan Collateral Advisor results are one of the many factors considered in our targeted sampling methodology.

No. Repurchase actions are the result of significant defects identified during a quality control underwriting review of the loan file.

Freddie Mac uses a variety of information, including the results from Loan Collateral Advisor rules, to measure appraiser performance.

No. Loan Collateral Advisor was developed to support the lender's appraisal underwriting and quality control functions. The results are to be used in conjunction with human due diligence and can be used to inform discussions with appraisers. Lenders may not ask appraisers to revise reports based solely on the Loan Collateral Advisor score and may not provide appraisers with messages directly from the system.

No. Loan Collateral Advisor is separate from the UCDP. Loan Collateral Advisor is a part of Freddie Mac Gateway and is available through the Freddie Mac Gateway portal.

Yes. Today, Loan Collateral Advisor integrates with the UCDP so that appraisal reports submitted to Freddie Mac via the UCDP automatically flow to Loan Collateral Advisor for assessment. Following a few seconds of assessment, Loan Collateral Advisor will then provide clear, actionable proprietary messages on its view of the appraisal.

And since Loan Collateral Advisor and the UCDP integrate seamlessly to allow for two-way transmission of Loan Collateral Advisor messages, proprietary messages are shared between both systems.

No. Appraisal management companies do not have access to Loan Collateral Advisor at this time, but we are considering a future offering.

Yes. After some natural disasters, it may become necessary to temporarily remove certain properties, that are located within zip codes identified as eligible disaster areas by the Federal Emergency Management Agency (FEMA), from receiving Loan Collateral Advisor Risk Scores. Visit our Natural Disaster Relief webpage to learn more about Freddie Mac disaster relief policy.

Collateral R&W relief provides the lender with information about eligibility for relief from reps and warranties related to property value, thereby reducing a lender’s risk of repurchase due to collateral-related defects. Appraisal reports submitted to the UCDP are assessed by Loan Collateral Advisor and the lender receives notification of the loan’s eligibility for collateral R&W relief related to value.

Simply submit your appraisal report to Freddie Mac through the UCDP and use Loan Selling Advisor^® to deliver the loan to Freddie Mac. All appraisal reports submitted to Freddie Mac through the UCDP are automatically assessed for collateral R&W relief eligibility by Loan Collateral Advisor.

No. There is no additional fee for mortgages that receive collateral R&W relief.

When you submit an appraisal report to the UCDP, the appraisal report automatically flows to Loan Collateral Advisor for assessment of eligibility for collateral R&W relief. You will receive a feedback message in the UCDP and an indicator in the SSR and Loan Collateral Advisor noting whether the appraisal report is eligible for R&W relief. Your final confirmation is at delivery of the loan in Loan Selling Advisor. You will also be able to pull reports and view loan details through Loan Coverage Advisor^® showing the relief was granted at delivery.

Yes. Each appraisal submission to the UCDP will be separately assessed by Loan Collateral Advisor for R&W relief eligibility.

A loan receiving R&W relief should not be excluded from your quality control program. Quality control may help identify underwriting deficiencies and can highlight appraiser-specific trends.

Yes. For a loan to be eligible for collateral R&W relief, the LTV/TLTV/HTLTV must be 95% or less.

No, using LPA is not required. However, Sellers are reminded that without the use of LPA, they will need to manually apply the 95% LTV/TLTV/HTLTV requirement.

Yes. Appraisal reports submitted to the UCDP will be assessed by Loan Collateral Advisor for R&W relief eligibility. In Loan Collateral Advisor, an eligibility indicator will show either eligible or not eligible and feedback messages will be provided to explain why an appraisal report is not eligible for R&W relief.

No. Each appraisal report submitted to the UCDP is assessed for R&W relief eligibility by Loan Collateral Advisor regardless of whether you have access to the tool. However, you are encouraged to get access to, and use, Loan Collateral Advisor not just because it assesses appraisals for R&W relief, but also because it provides you with a view of valuation risk and offers insights that can be beneficial in your quality control process.

These indicate the eligibility status for collateral R&W relief:

• Eligible: a green indicator with a checkmark tells you the appraisal is eligible for collateral R&W relief related to property value.
• Not eligible: an orange indicator with an exclamation point tells you the appraisal is not eligible for collateral R&W relief related to property value. You are encouraged to review the feedback messages for this appraisal and if correctable issues are identified and fixed, to resubmit the appraisal for assessment of eligibility.

NOTE: Even if an appraisal is “Not Eligible” for collateral R&W relief, if the UCDP Status Indicator indicates the loan is “Successful” and it otherwise meets our Single-Family Seller/Servicer Guide requirements, it is still eligible for sale to Freddie Mac.