Loan Product Advisor FAQ
Disclaimer
The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.
General
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- What is Loan Product Advisor® (LPA℠)?
- Is training available for Loan Product Advisor?
- Is Loan Product Advisor free?
LPA Choice
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- What is LPA Choice?
- If more than one LPA Choice message is returned for a loan, is the loan originator required to act on all LPA Choice messages?
- Will LPA Choice messages be returned for all loan types?
- Are LPA Choice messages available for government loans?
- Do LPA Choice messages impact assessments made by LPA’s automated collateral evaluation (ACE) and asset and income modeler (AIM) capabilities?
- Do lenders have to take action to receive LPA Choice messages?
- Will there be new message codes?
- If the loan originator resubmits the additional or changed information identified in the LPA Choice feedback messages, is the submission guaranteed a risk class of Accept?
- What happens if the borrower doesn’t have sufficient income or assets for the loan originator to address a potential item identified in the LPA Choice message?
- Why might a loan originator not receive LPA Choice messages on a conventional loan with a Caution risk class?
Collateral
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- What collateral valuation options does Loan Product Advisor support?
- What is automated collateral evaluation (ACE)?
- What is ACE+ PDR (ACE plus property data report)?
Asset and Income Modeler
Credit Risk Assessment with LPA
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- How can a borrower’s cash flow be considered in LPA's credit risk assessment?
- What actions can I take for a first-time homebuyer’s rent payment history to be considered in LPA’s credit risk assessment?
- What is required from a technical perspective to use rent payment history in LPA’s credit assessment with borrower provided documentation?
- If multiple borrowers are currently renting, do I need to provide documentation for all borrowers for LPA to assess rent payment history using borrower provided documentation?
- If the borrower provided documentation showing varying amounts paid each month due to other fees being included in the payment (e.g., the lease amount is $600/month and various months show amounts of $630, $650 and $625), what amount must be documented?
- If using rent payment history with borrower provided documentation, can a verification of rent (VOR), cash receipts, cash withdrawals or rent payments charged on a credit card account be used to document the rent payments?
- Can a loan’s assessment benefit from both positive borrower cash flow and consistent rent payment history?
Trended Credit Data
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- Are lenders required to perform an assessment of the trended credit data?
- Will the trended credit data requirement impact Loan Selling Advisor® delivery requirements?
- Does the trended credit data requirement apply to soft credit pulls?
- What will happen if the credit report does not include trended credit data?
- Must the credit report that is maintained in the mortgage file include the trended credit data that is submitted to LPA?
LPA Specification Version Information
Additional Tips and Resources
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