Loan Prospector September 19 Release
August 23, 2010
On September 19, we are updating Loan Prospector® to align with revised credit requirements regarding inquiries on a borrower’s credit report as announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2010-19 issued on August 16.
In Guide Bulletin 2010-19, we revised requirements regarding inquiries on a borrower’s credit report. Sellers must determine if additional credit was granted based on inquiries made by creditors in the past 120 days, extended from the current 90 days, as reflected in the borrower’s credit report. This change applies to all loans assessed in Loan Prospector regardless of risk class, and is effective for mortgages with settlement dates on or after December 1, 2010.
To align with this change, Loan Prospector will be updated to remove the following feedback message related to inquiries on a credit report. This feedback message was previously returned only with a Caution or A-minus risk class assessment reminding users to determine whether additional credit was granted as a result of credit inquiries in the last 90 days.
| Message Code | Feedback Message |
| LPR-5M | If the credit report indicates that an inquiry has been made within the previous 90-day period, 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, and resubmit to LP as applicable. |
This change is effective for all new submissions and resubmissions on or after September 19.
For inquiries on a borrower’s credit report please keep in mind, you must verify and determine if any new credit has been granted based on inquiries in the past 120 days, and consider that debt when qualifying the borrower. Refer to the requirements outlined in Guide Section 37.16 and the resubmission policy for Loan Prospector loans in Guide Section 2.2.1(k).
For More Information
- Review Guide Bulletin 2010-19
- Training Resources