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Loan Prospector July 15 Release

July 12, 2012

For you to continue to assess Federal Housing Administration (FHA) loans through Loan Prospector® we are updating Loan Prospector with new requirements and new feedback messages on July 15, 2012. These updates will align Loan Prospector with the FHA TOTAL Mortgage Scorecard version 3.0.

Loan Prospector Updated to Require Data for FHA Loans

FHA’s TOTAL Mortgage Scorecard version 3.0 will require some additional data fields and values for submission to the FHA TOTAL Mortgage Scorecard, effective July 21, 2012. Loan Prospector will be updated on July 15, 2012, to require the following data for FHA loans:

  • New Gift Letter Sources: Loan Prospector will capture the Gift Letter Sources for all FHA loans by adding additional identifiers. If you enter the Down Payment Type and it indicates Gift Funds, you must also select one of the following identifiers for the Down Payment Source:
    • N/A
    • Relative
    • Government Assistance
    • Employer/Other
    • Nonprofit/Religious/Community – Non-Seller Funded

    If a valid identifier is not selected for Gift Letter Sources in Loan Prospector, you will receive the following new invalid feedback message:
Message CodeFeedback Message
INV FZ Source of Gift fund provided is not valid, please reverify.
  • Estimated Closing Cost Amount: Loan Prospector will be updated to require the Estimated Closing Cost Amount. You will receive the following invalid feedback message if an amount is not entered in the field:
Message CodeFeedback Message
INV CM Estimated Closing Costs Amount must be >0.
Check with your loan origination system vendors to find out when your LOS will be updated with these requirements.
 

New Feedback Messages to Align With the FHA TOTAL Mortgage Scorecard

The following new feedback messages will be received for new submissions and resubmissions of FHA loans in Loan Prospector on and after July 15:

Message CodeFeedback Messages
RSK FC Required Investment must be <= to $999,999.00 on Refinance.
RSK FK Current Housing Expense exceeds monthly income.
RSK FL 1 or more x30 late mtge pmt last 12 mos. & cash-out refi.
RSK FM Seller Concession Amount exceeds 6% of Sales Price.
RSK FQ One or more borrowers without an available credit score.
DTE FA Estimated Closing Costs > 20% of Appraised Value on Refi.
DTE FB Borr Paid Closing Costs > 20% of Appr Value on Refinance.
DTR FN Required Investment must be greater than Negative Loan Amt.
DTE FP ReqdInvest > 120% of (lesser SalesPr or ApprVal) – MtgeAmt.
DTE FR Down Pymnt must be <150% of:="of:" Sales="Sales" Price="Price" (Mtg="(Mtg" Amt="Amt" -="-" MIP).
DTE FS Total Fixed Payment must be between $0 and Monthly Income.
DTE FT Estimated Closing Costs > 20% of Sales Price on Purchase.
DTE FX Seller Concession Amt must be => $0 and < 20% of Sales Pr.
DTE FY Borr Paid Closing Costs > 20% of Sales Price on Purchase.

Please note: These Loan Prospector updates align with the FHA TOTAL Scorecard and apply to all FHA loans, both new loans and resubmissions, regardless of the FHA Case Number Issuance Date.

New Feedback Message Provides Guidance on Use of Loan Prospector Feedback Certificate

Please note: The following new Loan Prospector feedback message to provide you with guidance on use of the Loan Prospector feedback certificate will not be implemented as planned on as part of the Loan Prospector July 15 release. We will provide a new implementation date for this feedback message soon.

Message CodeFeedback Message
DOC XC This Loan Prospector Feedback Certificate is proprietary and confidential. It is provided to the requesting User for its sole use in accordance with the terms of the User Agreement between the requesting User and Freddie Mac and as provided by law. No other party may use or rely upon this Certificate for any reason.

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