The following table displays feedback messages focused on the highest risk factors of the loan to guide the underwriting analysis. These messages appear on the Loan Prospector Full Feedback Certificate in the Credit Information section, Credit Risk Comments subsection.
Updated: July 2012
Code
Credit Risk Messages
01
Loan amt & upb diff, high risk combined w/other factors.
02
Increased risk associated with ARM adjustment terms.
03
Self-employed income adds risk combined with other factors.
04
Credit report shows lien or other significant derogatory.
05
Credit report indicates judgment/suit or other signif derog.
06
Credit rpt shows multiple derog tradelines/public records.
07
Credit report shows repo or other significant derogatory.
08
Number of mtg tradelines adds risk combined w/other factors.
09
Delinquency reported on significant accounts.
10
A warning flag appears on the credit report.
11
Recent bankruptcy/signif derog appears on credit report.
12
Analysis of debt ratio is recommended.
13
Recent foreclosure/signif derog appears on credit report.
14
A bankruptcy appears on the application.
15
A foreclosure appears on the application.
16
A bankruptcy indicator appears on the credit report.
17
Application/credit report indicates a bankruptcy.
18
Selected borr repository file has less than 3 tradelines.
19
# of major derogs exceeds lower risk class limit.
20
# of minor derogs exceeds lower risk class limit.
21
Credit report indicates tax lien or other significant derog.
22
Credit report indicates judgment/suit or other signif derog.
23
Housing ratio exceeds limit for lower risk class.
24
Application/credit report indicates a foreclosure.
28
Derogatory(s) reported on credit report(s).
29
Cash-out/payoff of jr. liens from loan proceeds adds risk.
31
Condos must have LTV ratio less than 95%.
32
Debt ratio exceeds limit based on debt/housing gap.
33
Warning exists in borrower credit report.
34
A foreclosure indicator appears on the credit report.
35
A fraud alert message appears on the credit report.
36
Stronger credit history required for the Freddie Mac 100.
37
# of minor/major derogs > lower risk class limit.
38
Crdt rpt shows repo, pd lien/judgment or other signif derog.
39
#maj derogs or collections > low risk class limit.
40
#repos/major/minor derogs > low risk class limit.
42
Borrower’s debt-to-income ratio exceeds 41 percent.
43
Sufficient credit not received for all borrowers.
44
Analysis of credit history is recommended.
45
Selected borr has multiple derog tradelines/public records.
46
Non-occupant borrower appears on the application.
47
Analysis of ratios is recommended.
50
Credit report shows collection and/or charge-off.
51
Number of inquiries - high risk combined w/ other factors.
52
Number of new accounts - high risk combined w/ other factors.
53
Short credit history - high risk combined w/ other factors.
54
Recent delinquency - high risk combined w/ other factors.
55
High balance to limits - high risk combined w/ other factors.
56
High proportion of derog tradelines to total tradelines.
57
High LTV/investment property/cash-out - high risk combination.
64
Crdt rpt w/ recent mtg delinq or review mtg credit history.
65
Additional borrowers may reduce risk.
67
Analysis of credit history is recommended.
68
A bankruptcy other signif derog appears on the credit rpt.
70
Credit report indicates judgment/suit or other signif derog.
71
A foreclosure/other signif derog appears on the credit rpt.
74
Signif derog tradelines/public records on credit report.
79
Payoff of junior liens from loan proceeds adds risk.
80
Recent bankruptcy/signif derog appears on credit report.
81
High balances to limits-high risk combined w/other factors.
82
One or more low repository credit scores – high risk.
83
Debt ratio w/credit/TLTV/reserves – high risk combination.
84
Increased risk associated with Initial Interest products.
85
Stronger credit history required for Home Possible.
86
Borrower(s) without usable credit score adds risk.
87
Increased risk associated with Stated Express.
88
Loan amount combined with other factors adds risk.
89
Risk may be reduced w/fixed rate or shorter fixed loan term.
90
Stronger credit history is required for LP Accept.
91
Addtl income or reduced debt may strengthen loan quality.
92
Property type adds risk when combined with other factors.
93
A more extensive credit history may lower risk.
94
Collection(s) and/or charge off(s) shown on credit report.
95
Recent collection activity combined with other factors.
