Loan Prospector® Outreach Provides New Feedback Messages

The following new feedback messages may be returned for all submissions and resubmissions to Loan Prospector Outreach on or beginning January 12, 2014, as applicable:

Message Code	Feedback Messages
LC	The Seller must determine if an ARM with an Initial Period of 7 or 10 years is a higher priced covered transaction as defined in Regulation Z, 12 C.F.R. 1026.43(b)(HPCT). If the ARM is an HPCT with an Application Received Date on or after 1/10/14 the Borrower must be qualified at the greater of the Note Rate or the fully-indexed rate; the greater of the Note Rate or the fully-indexed rate must be entered in the "Qualifying Rate" field.
LD	Mortgages with original maturities over 30 years must have Application Received Date prior to January 10, 2014 and Settlement Date on or before July 31, 2014.

Message Code

Feedback Messages

The Seller must determine if an ARM with an Initial Period of 7 or 10 years is a higher priced covered transaction as defined in Regulation Z, 12 C.F.R. 1026.43(b)(HPCT). If the ARM is an HPCT with an Application Received Date on or after 1/10/14 the Borrower must be qualified at the greater of the Note Rate or the fully-indexed rate; the greater of the Note Rate or the fully-indexed rate must be entered in the "Qualifying Rate" field.

Mortgages with original maturities over 30 years must have Application Received Date prior to January 10, 2014 and Settlement Date on or before July 31, 2014.

NOTE: Loan Prospector Outreach does not analyze compliance with laws, regulations, or ordinances – or with any requirements imposed by a regulator. Sellers are responsible for determining whether a mortgage processed through Loan Prospector Outreach complies with applicable laws and regulations, including the Consumer Financial Protection Bureau’s final rule.

Customer Support

If you have any questions about these updates, please contact the Freddie Mac customer support line dedicated to Loan Prospector Outreach at 866-733-0446, Monday-Friday, 8:00 am-8:00 pm (EST). Closed on New Year’s Day; Martin Luther King, Jr. Day; Memorial Day; Independence Day; Labor Day; Thanksgiving; and Christmas Day.