Loan Prospector Outreach Enhancements Align with Recent Guide Requirement Changes
June 22, 2014
We have updated Loan Prospector® Outreach to align with the Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-12 updates and clarifications of requirements for calculation of monthly debt payment-to-income ratio and verification of large deposits.
Loan Prospector Outreach Feedback Message Updates
Beginning June 23, 2014, you will receive the following revised feedback messages when applicable, for all submissions and resubmissions to Loan Prospector Outreach:
Monthly Debt Payment-to-Income Ratio
|Message Code||Feedback Messages|
|LPR 4U||Use 5% of the outstanding balance on revolving or open-ended accounts, regardless of the balance, in the absence of a monthly payment on the credit report or direct verification. Open-end accounts do not have to be included in the monthly debt payment if the Client has sufficient verified funds to pay off the outstanding loan balance.|
|LPR 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. For a student loan that is deferred or is in forbearance, use a minimum of 2% of the outstanding balance as the required monthly payment.|
Verification of Large Deposits Requirements
As stated in the Guide Bulletin 2014-12, we revised our requirements for verification of large deposits when using account statements to verify assets. Loan Prospector Outreach will be updated to remove the feedback message below at a later date. Until then, you may disregard this feedback message because it does not align with the revised requirements. (Refer to the Guide chapter 37 for the revised requirements
|Message Code||Feedback Message|
|DOC 3X||Other Assets: For an asset account verified with a direct account verification, document the source of funds for any account opened within 90 days of verification or has a balance that is significantly greater than the previously shown balance. If account statements are used to verify an asset account, document the source for any single deposit >25% of the total monthly qualifying income for the Mortgage.|
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.