Improving Data Quality with Additional Feedback
September 21, 2012
Beginning Monday, September 24, the loans that you deliver to Freddie Mac will receive additional feedback in the form of selling system purchase edits (critical errors) and messages based on the Uniform Loan Delivery Dataset (ULDD) requirements. The expanded purchase edits and messages are one way you can gain more confidence that the loans you deliver to Freddie Mac are consistent with our Single-Family Seller/Servicer Guide (Guide) requirements.
Sell & Deliver
If the loan data you deliver is accurately entered into the selling system and meets our Guide requirements, you should receive few additional messages, and you should not receive any critical purchase edits that must be cleared before proceeding with delivery. However, you must clear any purchase edits you do receive before delivering the loan to Freddie Mac. Please note:
- We have not made changes to our credit policy or delivery requirements—we are simply providing more information on the loan data that you deliver to Freddie Mac before settlement.
- In the past, we have used purchase edits as one way to provide Sellers with loan feedback, and we will continue to do so. We do not typically notify our Sellers about new purchase edits, however, we are informing you of this change now because some lenders could see additional purchase edits.
We have prepared a new job aid called Selling System Tips for Resolving Delivery Edits to help you better understand some of the issues that may trigger purchase edits and the steps to resolve them. While we realize that working through the edits could initially take additional time, the feedback may help you identify and correct loan issues before delivery, reducing costly and time-consuming post-purchase data corrections.
Consistent with the goals of the Uniform Mortgage Data Program®, the purchase edits will provide greater transparency and help improve risk management capabilities. These new purchase edits, along with the new selling representation and warranty framework announced in Single-Family Seller/Servicer Guide Bulletin 2012-18, are just two examples of how we continue to address your concerns around loan repurchase risk.