Loan Prospector November 13 Release
November 1, 2011
The November 13, 2011 Loan Prospector® release supports your continued use of Loan Prospector with the following updates:
- Discontinue returning the mortgage insurance feedback message for second home manufactured home mortgages with LTV ratios greater than 85 percent to align with requirements announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2010-09.
- Adding and updating Loan Prospector feedback messages as part of our ongoing effort to refine and maintain the information you need at origination.
- Revising the credit reporting company (CRC) technical affiliate drop-down list to remove companies no longer in business.
Updates to Loan Prospector Feedback Messages
With the November 13 release, you will see the following changes to Loan Prospector feedback messages, effective for submissions on or after November 13:
- Mortgage Insurance Feedback No Longer Returned: Loan Prospector will no longer return the mortgage insurance feedback message on a second home manufactured home mortgage with LTV ratios greater than 85 percent because these mortgages are not eligible for sale to Freddie Mac. This change is effective for all new submissions and resubmissions on or after November 13, and aligns with the selling requirements announced in Guide Bulletin
2010-9.
| Message Code | Feedback Messages |
|---|---|
| LPR-4F | This loan requires 25% Standard MI coverage. |
| LPR-4G | This loan requires 30% Standard MI coverage. |
- New and Updated Feedback Messages: As part of ongoing system maintenance, you will see the following new and revised feedback messages:
| Message Code | Feedback Messages | Purpose |
|---|---|---|
| New Feedback Message for Federal Housing Administration (FHA) loans | ||
| DOC U9 | If the credit report reveals that the borrower is disputing any credit accounts or public records, the mortgage loan application must be referred to a DE underwriter for review, unless the disputed account has a zero balance; is marked as "paid in full" or "resolved"; or has both a balance less than $500 and the date of the dispute is more than 24 months old. | Indicates the lender needs to verify if the borrower has disputed actions on their credit report. If this is true and the conditions listed here are not met, then disregard the FHA TOTAL feedback and refer the loan to manual underwriting. This feedback message will apply to new FHA submissions on and after November 13, 2011. This change is related to FHA Advisory email dated April 2011. |
| Updated Feedback Messages (Revised text) | ||
| WEB WT | Life Insurance: Most recent statements and proof of liquidation if assets required for closing. | Indicates recent statements and proof of liquidation are needed if assets are required at the time of closing. This change is effective for all new submissions and resubmissions on or after November 13. |
Revising the CRC Technical Affiliate List
The CRC technical affiliate drop-down list will be updated to remove the following companies no longer in business:
- Premium Credit Bureau/CDC via ISS
- Amaesing Credit Solutions, which is being combined with Advantage Credit Bureau
The technical affiliate field provides you with a more effective way to request new merged credit or use a previously obtained merged credit reference number (MCRN) from a sponsored technical affiliate. Currently, the only CRC supporting this enhancement is Equifax Mortgage Solutions (EMS). Contact your LOS vendors to determine when they will update the technical affiliate list in your system.
For More Information
- Review recent Guide Bulletins
- CRC technical affiliate list
- Review training resources