Skip to main content
SF.FreddieMac.com

Don’t Miss a Homeownership Opportunity

Top ways to clear Cautions in Loan Product Advisor® (LPASM). 

Getting a Caution risk class in Loan Product Advisor is not rejection. It’s a redirection to uncover missed opportunities that are more tailored for your borrower. Check back each month for updated tips and resources.

Feature Tip: Factor in New Message Details

LPA now includes messages that identify the primary factor (reason) contributing to a Caution, with details and supplementary loan data for certain messages. 

Match Your Clients to an Affordable 3% Down Payment Solution

In today’s market, homebuyers are shopping for a lender that can provide them with low down payment offerings. The Freddie Mac Home Possible® mortgage offers unique flexibility and a low, 3% down payment option.

Learn more about Home Possible Learn more about Home Possible

Locate the Message Code

Identify message FAL0037 which indicates the loan meets Home Possible income limits.

Guidance for Next Steps

Resubmit the loan with the Home Possible loan program identifier in LPA or your loan origination system.

How This Helps Get to Accept

Utilizing Home Possible’s credit fee cap and MI coverage levels can lower your client’s DTI, increasing the likelihood of acceptance.

Go With the Borrower Cash Flow

You get a feedback message associated with a Caution based on LPA’s credit risk assessment using traditional credit reporting. Check if the borrower’s cash flow qualifies to be used in the risk assessment.

Watch the Tutorial about Borrower Cash Flow

Locate the Message Code

Look in the credit section for message FCL0421, which indicates if the loan may benefit from a positive cash flow.

Guidance for Next Steps

Order an asset verification report and submit the loan to LPA—be sure to include the reference number with your submission.

How This Helps Get to Accept

Leveraging the cash flow assessment can only positively impact the risk assessment.

Tip the Scales to Lower DTI

You get a feedback message (PUR0020) associated with a Caution that indicates the debt-to-income (DTI) ratio is too high. Check if reserves could help lead the way home.

Learn More in a Webinar Learn More in a Webinar

Locate the Message Code

Look for message FAR0083 on additional reserves.

Guidance for Next Steps

Enter all asset accounts for the borrower. Include retirement accounts (IRA, 401k).

How This Helps Get to Accept

Reserves may not be required on every loan, but they could help strengthen loan quality.

Additional Resources