The Conventional Loan Processing Remarks feedback messages will identify data that either appears to be inconsistent or to contain errors. The feedback messages also identify any additional underwriting steps required to support the transaction. These messages appear on the Feedback Certificate in the Loan Processing Information section, Loan Processing Remarks subsection.
This loan may be eligible for sale to Freddie Mac as an Accept Mortgage based on the information submitted to Loan Prospector. Resubmit as a conventional ‘Mortgage Type’ (Loan Type) for more information.
1B
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 ‘Mortgage Type’ (Loan Type) for more information.
1C
Direct verification of mortgage payment history is required for mortgages not verified on credit report. The mortgage is ineligible for sale to Freddie Mac if the direct verification reveals more than 1x30 or any 60-day or more delinquencies in the last 12 months.
1D
For mortgages not verified on credit report, direct verification of payment history is required.
1X
This loan is subject to a Manufactured Home delivery fee.
2D
Investment Property: Financing concessions cannot exceed two percent of value.
2F
If any borrower has individual and/or joint ownership in more than one financed residential investment property (including the subject property), this mortgage is ineligible for delivery under the A-minus offering.
2J
A minimum 5% down payment must come from the owner occupant’s funds.
4C
Secondary Financing: All terms of the secondary financing must be disclosed on the loan application(or provide a copy of the executed Note) and the payments included in the monthly housing expense.
4D
The net purchase price is calculated by subtracting the sales concessions from the gross purchase price.
4E
This loan requires 12% Standard MI coverage.
4F
This loan requires 25% Standard MI coverage.
4G
This loan requires 30% Standard MI coverage.
4H
This loan requires 6% Standard MI coverage.
4M
All terms of the secondary financing must be disclosed on the loan app. (or provide a copy of the executed Note), the payments must be included in the monthly housing expense, and file must contain evidence of subordination (e.g. a copy of the executed Subordination Agreement). If not on the credit report, the unpaid principal balance and payment amount must be documented with a recent statement, coupon, or other appropriate documentation.
4U
Use 5% of the outstanding balance on revolving or open-ended accounts, regardless of the balance, in the absence of a stated payment on the credit report or direct verification. Open-end accounts do not have to be included in the monthly debt payment if the Borrower has sufficient funds to pay off the outstanding account balance.
4X
To exclude payment on a contingent liability from the monthly debts, obtain evidence that all payments have been made on time by someone other than the Borrower for the most recent 12 months, and document who makes the payments by obtaining copies of canceled checks or a statement from the lender.
5L
The Seller must assume the borrower's capacity to repay is not acceptable when the Mortgage is a LP Caution Mortgage, a cash-out refinance, and at least one Credit Risk Comment related to the monthly debt payment-to-income ratio is returned on the Feedback Certificate.
5M
The credit report for ~Borrower1~ indicates that at least 1 creditor has made an inquiry within the previous 120 days. Determine whether additional credit was granted. A letter from the creditor or a signed statement from the Borrower may be used to determine whether additional credit was obtained. If additional credit was granted, obtain verification of the debt and consider the debt when calculating the monthly debt ratio.
5N
All terms of the secondary financing must be disclosed on the loan application (or provide a copy of the executed Note), the payments must be included in the monthly housing expense, and the file must contain evidence of subordination (such as a copy of the executed Subordination Agreement).
5Q
If secondary financing is not available on the credit report, the unpaid principal balance, payment amount, and payment history for the most recent 12 months must be documented in the mortgage file with a direct verification or a combination of cancelled checks and recent statement for coupon.
5U
This is an Initial Interest loan.
5V
The PITI fields for Initial Interest loans should reflect the monthly interest, taxes, and insurance. Principal is not included in the PITI for Initial Interest loans.
5W
This loan is subject to an Initial Interest delivery fee.
For all borrowers who do not have a usable credit score, document that any debt not on the repositories credit report has a satisfactory payment history and is included in the total liabilities.
8B
The subject property is located in an area adversely impacted by a major disaster. Refer to the Freddie Mac Guide and any Bulletins for specific underwriting provisions related to LTV/TLTV/HTLTV ratio limits, credit reputation, capacity and appraisal requirements.
8H
The secondary financing must permit prepayment at any time without penalty.
8J
The payment for HELOC secondary financing must be based on the unpaid principal balance (‘UPB’)
9M
The Home Possible delivery fee is waived if delivered as a Home Possible 3% Cash or a Home Possible Neighborhood Solution 3% Cash.
AK
Stated debt from the loan application may be used to calculate the total obligations-to-income ratio.
If the contingent liability is an assumed mortgage, obtain a copy of the documents transferring the property and the assumption agreement executed by the transferee in order to exclude the payment from the monthly debts. The payment on a secured debt or mortgage can also be excluded from the monthly debts if the obligation has been assigned to another by a court order; document the file with the court order and the transfer of title.
CC
Standard forms of documentation (such as written VOE, VOD, income information obtained directly from IRS) may be used as addressed in the Single-Family Seller/Servicer Guide.
CT
Secondary Financing: The secondary financing on this loan must be an Affordable Second and must meet all the requirements applicable to Affordable Seconds.
D4
Borrower Funds: The borrower must have at least three percent his/her own funds in this transaction to be used for closing costs, financing costs, prepaids/escrows and/or down payment.
DB
This loan is eligible for 25% Reduced MI coverage.
E7
If credit report does not show the required monthly payment for an installment account, the file must be documented with evidence of the required payment amount. Examples of acceptable documentation would include a copy of the payment coupon, a copy of the original contract or direct verification obtained from the creditor.
This loan is for a 3-4-unit property and is subject to a Number of Units fee.
HU
If this loan is for a unit in a new or newly-converted attached Florida condominium project, it is required to comply with S/S Guide Chapter 42 to be eligible for sale to Freddie Mac, and requires delivery of a special characteristics code (SCC).
HZ
Buydowns on No Cash-Out Refinances: Buydowns funded from Premium Financing on no cash-out refinance mortgages are not eligible for sale to Freddie Mac.
J7
This loan may be subject to an Indicator Score/Loan-To-Value Ratio delivery credit.
JG
This loan is subject to a Home Possible delivery fee.
JH
This loan is subject to a Home Possible 3-4 Unit delivery fee.
JI
This Caution loan is eligible for sale as an A-minus mortgage. The A-minus delivery fee is waived if delivered as a Home Possible loan.
JJ
The CS/LTV delivery fee for this Caution loan is waived if delivered as a Home Possible loan.
JK
This loan was submitted as a Home Possible loan.
JM
This loan was submitted as a Home Possible NH Solution.
JQ
All funds must be verified for Home Possible no cash out refinances.
JR
This loan meets Home Possible income limits based on property location for address entered. This loan must also meet all other Home Possible product requirements for delivery to Freddie Mac.
JS
This loan meets Home Possible Neighborhood Solution income limits based on property location for address entered. This loan must also meet all other Home Possible product requirements for delivery to Freddie Mac.
JT
This loan meets Home Possible income limits based on property location for address entered. If you choose to deliver this loan as a Home Possible loan, it must meet all requirements of the Home Possible product selected.
JW
Early Delinquency Counseling must be provided to the borrower in the event of a delinquency per Freddie Mac Seller/Servicer Guidelines.
K2
This Home Possible loan requires 6% MI coverage.
K3
This Home Possible loan requires 12% MI coverage.
K4
This Home Possible loan requires 16% MI coverage.
K5
This Home Possible loan requires 18% MI coverage.
K6
This Home Possible loan requires 20% MI coverage.
K7
If secondary financing is not an Affordable Second, this loan will be subject to a secondary financing delivery fee.
K8
The income used to qualify the borrower for this mortgage is at or below 80% of the Area Median Income and may be eligible for a reduced Home Possible delivery fee.
MD
This loan is subject to an adjustable rate mortgage (ARM) fee.
ME
This loan is subject to a cash-out refinance fee.
MG
This secondary financing structure is subject to a fee.
MF
This loan is for a 2-unit property and is subject to a Number of Units fee.
RU
If this loan is delivered with Property Inspection Alternative, it is subject to a fee when delivered to Freddie Mac.
TS
This 40-year loan is subject to a delivery fee.
TT
For future submissions, use new ‘New Construction’ values of 'Newly Built' or 'Construction Conversion'.
UH
The credit report for ~Borrower5~ indicates that at least 1 creditor has made an inquiry within the previous 120 days. Determine whether additional credit was granted. A letter from the creditor or a signed statement from the Borrower may be used to determine whether additional credit was obtained. If additional credit was granted, obtain verification of the debt and consider the debt when calculating the monthly debt ratio.
V7
This loan may be subject to an Indicator Score/Loan-to-Value ratio delivery fee.
V8
This loan is subject to a Market Condition delivery fee.
XG
This loan requires 12% MI Coverage.
XH
This loan requires 17% MI Coverage.
XJ
This loan requires 25% MI Coverage.
XK
This loan requires 30% MI Coverage.
XL
This loan requires 35% MI Coverage.
YP
The occupant Borrower's monthly debt payment-to-income ratio must not exceed 43% of the occupant Borrower's stable monthly income.
YQ
The credit report for ~Borrower2~ indicates that at least 1 creditor has made an inquiry within the previous 120 days. Determine whether additional credit was granted. A letter from the creditor or a signed statement from the Borrower may be used to determine whether additional credit was obtained. If additional credit was granted, obtain verification of the debt and consider the debt when calculating the monthly debt ratio.
YR
The credit report for ~Borrower3~ indicates that at least 1 creditor has made an inquiry within the previous 120 days. Determine whether additional credit was granted. A letter from the creditor or a signed statement from the Borrower may be used to determine whether additional credit was obtained. If additional credit was granted, obtain verification of the debt and consider the debt when calculating the monthly debt ratio.
YS
The credit report for ~Borrower4~ indicates that at least 1 creditor has made an inquiry within the previous 120 days. Determine whether additional credit was granted. A letter from the creditor or a signed statement from the Borrower may be used to determine whether additional credit was obtained. If additional credit was granted, obtain verification of the debt and consider the debt when calculating the monthly debt ratio.
Z8
When the Field Review Report results in a different value than the appraisal, the lowest of the appraised value, field review value or sales price must be used to calculate the LTV/TLTV/HTLTV ratio.
ZB
An update of the original appraisal is required within 120 days before the effective date of the permanent financing.
ZD
For super conforming Mortgages with LTV/TLTV/HTLTV >75% and the value of the Mortgaged Premises is >$1,000,000, Form 1032 or Form 1072 is required.
ZH
Address information provided was insufficient to return county loan limit.
ZJ
This loan is for a Condominium and may be subject to a delivery fee.
ZK
Owner-Occupied or Second Home Property: Financing concessions cannot exceed nine percent of value.
ZL
Owner-Occupied or Second Home Property: Financing concessions cannot exceed six percent of value.
ZM
Owner-Occupied or Second Home Property: Financing concessions cannot exceed three percent of value.
ZN
This loan may be subject to a high LTV delivery fee.
