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Loan Prospector® Outreach

Mortgage-Readiness Assessment for Housing Professionals

New and Updated Feedback Messages

Effective June 14, 2009, we have updated Loan Prospector Outreach with new and updated feedback messages to reflect recent changes to our underwriting requirements. These messages will help you more quickly and efficiently determine what your clients need in order to become eligible for a mortgage.

The feedback messages are effective for all Loan Prospector Outreach submissions, including new submissions and resubmissions, as of June 14, 2009. Below is a complete list of the feedback messages, in addition to a description of the purpose of the feedback messages.

Message CodeFeedback MessagePurpose
New Feedback Messages
LPR 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). Indicates the underwriting review of condominium projects to ensure that both the project and the condominium unit mortgage meet the Guide requirements and are delivered to Freddie Mac with the special characteristic code (SCC) for condos.
LPN HV Review for Accuracy: Loan was submitted with buydown plan and fixed-rate mortgage; borrower must be qualified using monthly housing payment calculated at the Note rate. Indicates the need to review the buydown plan for fixed-rate mortgages (including balloon/reset mortgages) and the need to qualify the borrower using the monthly housing payment calculated at the note rate.
LPN HW Review for Accuracy: Loan was submitted with buydown plan and adjustable rate mortgage; borrower must be qualified using monthly housing payment calculated at the higher of the Note Rate or the fully indexed rate. Indicates the need to review the buydown plan for ARMs and the need to qualify the borrower using the monthly housing payment calculated at the higher of the note rate or the fully indexed rate.
LPR ZK Owner-Occupied or Second Home Property: Financing concessions cannot exceed nine percent of value. Indicates maximum financing concessions allowed on LTV/TLTV ratios equal to or less than 75 percent when financing concessions are prevalent in purchase transactions for primary residences and second homes. Review for accuracy.
LPR ZL Owner-Occupied or Second Home Property: Financing concessions cannot exceed six percent of value. Indicates maximum financing concessions allowed on LTV/TLTV ratios greater than 75 percent and equal to or less than 90 percent, when financing concessions are prevalent in purchase transactions for primary residences and second homes. Review for accuracy.
LPR ZM Owner-Occupied or Second Home Property: Financing concessions cannot exceed three percent of value. Indicates maximum financing concessions allowed on LTV/TLTV ratios greater than 90 percent, when financing concessions are prevalent in purchase transactions for primary residences and second homes. Review for accuracy.
Updated Feedback Messages (Existing messages updated with new language)
LPR 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 days or any 60-days or more delinquencies in the last 12 months. Indicates the mortgage payment history for qualifying borrowers must be directly verified during the prior 12-month period and the borrower was not more than 30-days delinquent more than one time or 60-days delinquent.
CRW A5 Ratio Warranty: Not required to determine if the borrower's primary housing expense-to-income and total obligation-to-income ratios meet Freddie Mac requirements. Indicates the calculation or evaluation of the borrowers debt-to-housing gap ratio is no longer required.
CRW A6 Ratio Warranty: Required to determine if the borrower's primary housing expense-to-income and total obligation-to-income ratios meet Freddie Mac requirements. Indicates the calculation or evaluation of the borrowers debt-to-housing gap ratio is no longer required.
LPR 2E None of the borrowers may have individual and/or joint ownership of more than four 1- to 4- unit financed residential properties, including the subject property. Indicates the borrowers cannot have ownership of more than four 1-to 4-unit properties.
LPR 2D Investment Property: Financing concessions cannot exceed two percent of value. Indicates maximum financing concessions allowed on LTV/TLTV ratio when financing concessions are prevalent in purchase transaction for an investment property. Review for accuracy.
Updated Feedback Messages (Updated when existing feedback messages are returned)
LPN ZB An update of the original appraisal is required within 120 days before the effective date of the permanent financing. Indicates an appraisal update is required for mortgages delivered more than 120 days after the note date. The effective date of the appraisal update must be no more than 60 days prior to the delivery date or settlement date.
PUR 25 LTV/TLTV exceeds product limits. Indicates that the LTV/TLTV ratio exceeds product guidelines modification to include Home Possible® 2-to 4 units with a LTV ratio greater than 85 percent and TLTV ratio greater than 95 percent.
DOC JX If all Client(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. Indicates changes made to Freddie Mac requirements for homeowner education, for Home Possible Mortgages on purchase loans when all clients are first-time homebuyers.

 

As of June 14, the following feedback message has been removed from Loan Prospector Outreach:

Message CodeFeedback Message
LPR DF Secondary Financing: The secondary financing on this Alt 97 loan must be an Affordable Second and must meet all the requirements applicable to Affordable Seconds.

 

In addition, on June 14 Loan Prospector Outreach was updated with the following new and updated feedback messages effective for all Loan Prospector Outreach submissions, including new submissions and resubmissions.

Message CodeFeedback MessagePurpose
New Feedback Messages
REP B6 Lack of recent consumer finance company account information Indicates more information is needed about the consumer finance company account.
REP B5 Lack of recent auto finance loan information. Indicates more information is needed about the auto finance loan.
INV CL Initial Interest Loans are not eligible for streamline refi Indicates Initial InterestSM Mortgages are not eligible.

 

Customer Support

If you have any questions about the updated feedback messages or about using Loan Prospector Outreach, please contact Freddie Mac's customer support line dedicated to Loan Prospector Outreach at 866-733-0446, Monday – Friday, 8:00 a.m. – 8:00 p.m. ET. For more information, please visit Loan Prospector Outreach Tools and Resources.

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