The Conventional Documentation Guideline feedback messages will assist you in validating information transmitted to Loan Prospector. These messages appear on the Feedback Certificate in the Loan Processing Information section, Documentation Guideline subsection.
This loan may be eligible for sale to Freddie Mac as an Accept Mortgage, however, based on the information submitted to Loan Prospector, one or more purchase restrictions were triggered. Resubmit as a conventional loan type for more information.
1K
Any borrower, whose income is used to qualify, must sign IRS Form 4506-T at both application and on the Note Date. If the signed IRS Form 4506-T from application is submitted to the IRS, and transcripts are received back from the IRS, the requirement to obtain an additional borrower signed IRS Form 4506-T on the Note Date is not required.
1P
Reserves: Verify all reserves submitted to Loan Prospector.
2B
If rental income is used to qualify, borrower must demonstrate at least a two-year landlord history regardless if rental income yields a positive or negative cash flow.
2G
Documentation is required to evidence that any junior lien paid off from the proceeds of a ‘no cash out’ refinance must have been used in its entirety to acquire the subject property.
2V
If rental income from the subject property is used to qualify, provide evidence of rent loss insurance coverage in an amount equal to the gross monthly rent for at least six months.
3H
Investment Property – gift funds are not allowed.
3X
For any asset account that was opened within 90 days of verification, reflects large deposits or has a balance that is significantly greater than the previously shown balance, the Seller must include reliable documentation that the source of the funds meets Freddie Mac's requirements.
3Y
Sale of Assets: Obtain bill of sale and proof of proceeds, or documentation of the existence and Borrower ownership of the asset (e.g. car title), documentation of the value of the asset by a third party (e.g. blue book or appraisal), and documentation that a buyer exists at the specified price (e.g. letter of intent or contract), if an asset (other than real estate or exchange-traded securities) will be sold for funds required to close.
4R
If any borrower is self-employed, most recent 1 year signed complete individual and business federal tax returns, third party verification of business within 30 days prior to Note Date, and Form 91 or comparable form are required. If not using self-employed income to qualify, obtain individual federal tax returns to review for possible business loss and determine the effect any possible business loss has on the Borrower’s qualifying income.
4V
If using alimony, child support or separate maintenance payments to qualify, obtain copy of signed court order documenting payor’s obligation to Borrower for previous six months and evidence payor is obligated to make payments to Borrower for the next three years. File must contain proof of consistent receipt for total court ordered amount for most recent six months.
4Z
If applicable, document on the Uniform Residential Loan Application any employment gaps greater than 60 days and provide an explanation from the borrower in the mortgage file.
5A
This loan is A-minus eligible and requires STANDARD documentation.
5C
If any borrower is self-employed, most recent 2 years signed complete individual and business federal tax returns, third party verification of business within 30 days prior to Note Date, Form 91 or comparable form required. If not using self-employed income to qualify, obtain individual federal tax returns to review for possible business loss and determine the effect any possible business loss has on the qualifying income.
8Y
Retirement Accounts: Obtain most recent monthly statement. Only 70% of the vested amount of the account may be used as funds for closing and for amount of reserves submitted to LP. If the assets in the account are needed for closing, proof of liquidation must be provided.
9G
The Seller must maintain in the mortgage file, written documentation that the borrower meets the employment requirements for a Home Possible Neighborhood Solution Mortgage, such as a paystub, W-2, letter from the borrower’s employer, Defense Department Form 214 (Form DD214), or other documentation that provides comparable information.
A2
This loan qualifies for standard documentation.
AG
This loan qualifies for standard documentation.
B8
Gift funds: List donor's name, address, phone #, relationship to borrower, subject property address and dollar amount of gift, ~GiftFund~, in a gift letter signed by donor for each gift received.
B9
Gift funds: If the verifications provided in the mortgage file do not show evidence that the gift funds have been deposited in the borrower’s account, provide documentation of the transfer of funds from the donor to the borrower.
CD
Sale of home: Obtain executed HUD-1 or equivalent closing statement. If relocation, obtain executed buyout agreement (evidencing mortgage will be paid by employer/relocation company) and closing statement.
CE
Reserves: Verify all reserves submitted to Loan Prospector.
CL
For all income, including income topics such as retirement, long-term disability, temporary leave, public assistance, military reserves, mortgage differentials and assets as a basis for mortgage qualification, refer to the Freddie Mac Single-Family Seller/Servicer Guide, Chapter 37. The guidance includes income topics referenced within the existing LP messages as well as all other income topics.
CN
Depository, Stock and/or Bond Accounts: Obtain most recent statement(s) for each account to verify sufficient funds for closing and for amount of reserves submitted to LP. Proof of liquidation of non-liquid accounts is required if assets are needed for closing.
CP
Retirement Accounts: Obtain most recent 2 months statement. 70% of the vested amount minus any outstanding loans may be used as funds for closing and reserves submitted to LP. If the assets in the account are needed for closing, proof of liquidation must be provided in the mortgage file.
CR
Life Insurance: Obtain most recent life insurance policy statements to verify reserves submitted to LP; also obtain evidence of liquidation if necessary to verify sufficient funds for closing.
CV
Obtain most recent YTD paystub documenting 1 full month, W-2(s) from the most recent tax year, and a verbal VOE, using Form 90 or comparable form, dated no more than 10 Business Days prior to the Note Date or after the Note Date but prior to the Delivery Date; or, a written VOE for 12 full months and a verbal VOE dated no more than 10 Business Days prior to the Note Date or after the Note Date but prior to the Delivery Date for ~EmplBorr~
CY
If self-employed, most recent 1 year complete individual and business tax returns for each business providing income to ~SlfEmpBorr~, third party verification within 30 days prior to the Note Date, and completed Form 91 or comparable form required. If not using self-employed income to qualify, then obtain individual federal tax returns to review for possible business loss and determine the effect any possible business loss has on qualifying income.
DP
If self-employed, most recent 2 year complete individual and business tax returns for each business providing income to ~SlfEmpBorr~, third party verification within 30 days prior to the Note Date, and completed Form 91 or comparable form required. If not using self-employed income to qualify, then obtain individual federal tax returns to review for possible business loss and determine the effect any possible business loss has on qualifying income.
DS
Depository, Stock and/or Bond Accounts: Obtain most recent 2 months statements for each account to verify sufficient funds for closing and for amount of reserves submitted to LP. Proof of liquidation of non-liquid accounts is required if assets are needed for closing.
E6
Reserves: Verify at least 1 month reserves {$PITI}.
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EW
Seller is responsible for documenting and underwriting all Mortgages in accordance with the requirements of the Single-Family Seller/Servicer Guide and/or Master Agreement.
G7
This loan qualifies for STREAMLINED ACCEPT Loan Prospector documentation.
GY
Gift Funds: If sufficient funds required to close have not been verified in borrower's accounts, document transfer of gift funds to the borrower.
JX
If all Borrower(s) are First-Time Homebuyers, at least one qualifying Borrower must participate in a homeownership education program before the Note Date. Retain Homeownership Education Certificate or comparable document in the mortgage file.
JY
Landlord Education: Landlord education required. A Certificate of Achievement, or comparable document, must be maintained in the mortgage file.
X1
Obtain most recent YTD paystub documenting at least 30 days of income and W-2(s) from the most recent 2 years or a written VOE for 24 full months. Additionally, obtain a verbal VOE, using Form 90 or comparable form, dated no more than 10 Business Days prior to the Note Date or after the Note Date but prior to the Delivery Date.
X3
For Borrowers who receive income from commissions, document a two-year consecutive history of receipt of the income (i.e., signed complete individual federal tax returns, including Schedule A, for the most recent two-year period). Also provide written VOE covering most recent two-year period, or most recent YTD paystub(s) covering at least 30 days of income and most recent two years W-2s. The income must be likely to continue for the next three years.
X5
For Borrowers who receive income from bonus, overtime, tips, and/or second or additional jobs, document that the Borrower has a two-year consecutive history of receipt of the income (i.e., written VOE covering the most recent two-year period or the most recent YTD paystub(s) covering at least 30 days of income and the most recent two years W-2s). The income must be likely to continue for the next three years.
X7
For Borrowers who receive income from notes receivable, document Borrower has a one-year consecutive history of receipt of the income (i.e., copy of the note and proof of receipt of payments in accordance with the terms of the note for the most recent one-year period). The income must continue for the next three years.
XA
For Borrowers who receive income from dividends and interest and/or capital gains, document a two-year history of receipt of the income (i.e., signed complete individual federal tax returns for the most recent two-year period including Schedules B and/or D, as applicable) and sufficient assets remaining after closing to support continuance of the qualifying income for at least the next three years.
XE
For Relief Refi-Open Access, regardless of the Documentation Level returned in this LP Feedback Certificate, income and asset documentation requirements in Guide section B24.3(f) apply.
XM
For Borrowers who receive income from dividends and interest, capital gains, or royalty payments, obtain a signed complete individual federal tax return for the most recent one-year period and evidence of sufficient assets remaining after closing to support the qualifying income for dividend/interest income and capital gains.
XP
For Borrowers who receive income from commissions, obtain a YTD paystub, salary voucher or written verification documenting at least 30 days of income OR signed complete individual federal tax returns for the most recent one-year period. Additionally, obtain a verbal VOE dated no more than 10 Business Days prior to the Note Date or after the Note Date but prior to the Delivery Date.
XR
For Borrowers who receive income from notes receivable, obtain copy of the note and proof of receipt of payments in accordance with the terms of the note for the most recent one-month period.
XT
Retirement Accounts: Obtain most recent monthly statement. 70% of the vested amount minus any outstanding loans may be used as funds for closing and reserves submitted to LP.
XV
If any borrower is self-employed, obtain most recent 1 year signed complete individual federal tax return, and third party verification of business dated within 30 calendar days prior to Note Date or after the Note Date but prior to the Delivery Date.
XY
If using alimony, child support or separate maintenance payments to qualify, obtain a copy of the signed court order and evidence of receipt of the total court ordered amount for most recent 1 month.
Y8
Retirement Accounts: Obtain most recent monthly statement. 70% of the vested amount minus any outstanding loans may be used as funds for closing and reserves submitted to LP. If the assets in the account are needed for closing, proof of liquidation must be provided in the mortgage file.
YA
For all income types, including, but not limited to income types such as rental income, temporary leave, military and military reserves, mortgage differentials and assets as a basis for mortgage qualification, refer to the Freddie Mac Single-Family Seller/Servicer Guide, Section B24.3 (f)(i). The guidance includes income types referenced within the existing LP messages as well as all other income types.
YC
Depository, Stock and/or Bond Accounts: Obtain most recent monthly or quarterly account statement for each account to verify sufficient funds for closing and for amount of reserves submitted to LP.
YE
Cash Value of Life Insurance: Obtain the most recent monthly or quarterly statement.
YG
For Borrowers who receive income from primary or secondary employment, bonuses, overtime, tips or an automobile allowance, obtain most recent YTD paystub, salary voucher or written verification of employment documenting 1 month of income, and a verbal VOE dated no more than 10 Business Days prior to the Note Date or after the Note Date but prior to the Delivery Date.
YJ
If using retirement, survivor and dependent benefits, long-term disability, social security, public assistance, Section 8 assistance, foster care or supplemental security income to qualify, obtain a copy of the award letter, 1099 or other third-party documentation showing income type, source, and amount OR the most recent 1 month bank statement or other equivalent documentation evidencing receipt of the income.
YU
A bankruptcy appears on the application. The mortgage file must contain:1)Copies of the bankruptcy petition, schedule of debts and discharge or dismissal 2)Evidence to indicate that all debts not satisfied by the bankruptcy have been paid or are being paid and 3)Any other evidence necessary to support the Seller's determination that the Borrower has reestablished and maintained an acceptable credit reputation.
YV
A foreclosure/deed-in-lieu of foreclosure appears on the application. The mortgage file must also contain evidence of the completion of the foreclosure/deed-in-lieu of foreclosure.
YW
The Borrower has had a foreclosure within the last seven years. The mortgage file must also contain evidence of the completion of the foreclosure.
YX
The Borrower has had a short sale/deed-in-lieu of foreclosure within the last seven years. The mortgage file must also contain evidence of the completion of the short sale/deed-in-lieu of foreclosure.
YY
The Borrower has had a bankruptcy within the last seven years. The mortgage file must contain 1)Copies of the bankruptcy petition, schedule of debts, and discharge or dismissal, 2)Evidence to indicate that all debts not satisfied by the bankruptcy have been paid or are being paid, and 3)Any other evidence necessary to support the Seller's determination that the Borrower has reestablished and maintained an acceptable credit reputation.
YZ
The Borrower has had a bankruptcy. If the bankruptcy was filed within the last seven years, the mortgage file must contain 1)Copies of the bankruptcy petition, schedule of debts, and discharge or dismissal, 2)Evidence to indicate that all debts not satisfied by the bankruptcy have been paid or are being paid, and 3)Any other evidence necessary to support the Seller's determination that the Borrower has reestablished and maintained an acceptable credit reputation.
