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ULDD Data Quality Announcement

March 26, 2013

To: All Freddie Mac Sell & Deliver subscribers
Date: March 26, 2013
Subject: The Importance of Data Accuracy, ULDD Data Point Clarifications, and Updated ULDD Specification

Fannie Mae and Freddie Mac (the GSEs) are reminding Sellers of the importance of data accuracy to improve the overall quality of loan delivery data submitted to each GSE and ensure that it is complete and fully reflective of the terms of the mortgage. Since the implementation of the Uniform Loan Delivery Dataset (ULDD) in July 2012, we have received feedback that Sellers may not understand the requirements for some data points, resulting in the delivery of incorrect data. To address this issue, we are providing clarifying information on those data points. Please review the clarifications to the ULDD data points noted below and share this information with others in your organization.

Implementation Guide for Loan Delivery Data: Appendix A and D Updates
The GSEs are also providing an update to the Implementation Guide for Loan Delivery Data: Appendix A – XML Data Requirements, with revised language in the Implementation Notes for some data points. In addition, we have updated the Excel version of Appendix A, the Implementation Guide for Loan Delivery Data: Appendix D – XML Data Requirements Reference Tool, which is easy to sort and organize. Both appendices now include information for the new mortgage insurance company announced in the March 25 Single-Family News Center announcement.

To address necessary changes or clarifications to the ULDD specification, we will issue quarterly updates as necessary. Be sure to look for updated or new tabs in the appendices and review the details noted in the Revision History section for a complete list of the changes and clarifications.

Clarifying Information on Select ULDD Data Points for Data Accuracy

Mortgage Funder (FullName) – Sort ID 641.1

The intent of the Mortgage Funder (FullName) field (commonly referred to as "Note Pay To") is to provide the exact name of either an individual or a legal entity that is listed on the mortgage note, even if it conflicts with the actual funder of the loan. The GSEs require that the Mortgage Funder (FullName) (e.g., "Note Pay To" name) be exactly the same as the name that appears on the Note.

For example, on the Note in Section 1, Borrower's Promise to Pay, the Seller must deliver the full name exactly as it appears after "The Lender is". Currently, some Sellers may be delivering the Servicer Number, NMLS Number, shipper name or an abbreviated version of the lender name from the note.

Using the example below, the Mortgage Funder (FullName) in "The Lender is" section is, BANK OF HERNDON, FAIRFAX COUNTY, VA DBA HERNDON FAIRFAX BANK & TRUST. The Seller must deliver the name exactly as it appears in this section. In this case, the Seller would deliver BANK OF HERNDON, FAIRFAX COUNTY, VA DBA HERNDON FAIRFAX BANK & TRUST.

Example 1-Name on Note is AbbreviatedExample 2-Name on Note Exceeds 100 Characters

When the financial institution name shown on the note includes abbreviations, deliver the name exactly as shown, including the abbreviated words:

1. BORROWER'S PROMISE TO PAY
In return for a loan that I have received….. The Lender is N. Town & S. Country Bank, Ltd.

In the Loan Delivery File, for PartyRoleType = "NotePayTo", the value in FullName should be "N. Town & S. Country Bank, Ltd."

When the financial institution name shown on the note exceeds the 100-character limit of the loan delivery file, include the first 100 characters exactly as shown:

1. BORROWER'S PROMISE TO PAY
In return for a loan that I have received….. The Lender is Extremely Long Name of this Financial Institution Based in a City with an even Longer Name, Incorporated.

In the Loan Delivery File, for PartyRoleType = "NotePayTo", the value in FullName should be "Extremely Long Name of this Financial Institution Based in a City with an even Longer Name, Incorpor"

PriceLockDatetime – Sort ID 311

The intent of the PriceLockDatetime data point is to deliver the date on which the agreement to lock a price with the borrower was made with the Originator. Do not deliver the date the originator locked the rate with their Correspondent or other non-borrower party. With time extensions, Sellers must submit the original PriceLockDatetime for the borrower unless the extension results in a change to the interest rate. If the extension results in a change to the interest rate, the Seller must submit the date of the price lock extension as this will represent the interest rate that will be on the note. Enter only the date, the time will be ignored.

The GSEs are not requiring that Sellers amend this information for previously delivered loans. However, you should implement the appropriate changes in your system as soon as possible, but no later than August 25, 2014.

Below are a few examples:

Example 1Example 2
  • Rate locked for 4.00% on 2/15/2013
  • Loan closes on 3/1/2013
  • Lender delivers loan to Fannie Mae on 4/1/2013.
  • Price Lock Datetime to be delivered = "2013-02-15"

 

  • Rate locked for 4.00% on 2/15/2013
  • Rate lock expires and lender obtains 30-day
    extension on 3/15/2013 with the same rate
  • Loan closes on 4/1/2013
  • Seller delivers loan to Freddie Mac on 5/1/2013
  • Price Lock Datetime to be delivered = "2013-02-15" because the rate did not change with the extension
Example 3Example 4
  • Rate locked for 4.00% on 2/15/2013
  • Rate lock expires and lender obtains 30-day extension on 3/15/2013 with a rate of 3.50%
  • Loan closes on 4/1/2013
  • Lender delivers loan to its investor on 4/5/2013 and investor sells loan to Fannie Mae on 5/1/2013
  • Price Lock Datetime to be delivered = "2013-03-15" because the rate changed with the extension
  • Rate locked for 4.00% on 2/15/2013
  • Rate lock expires and lender obtains 30-day
    extension on 3/15/2013 with a rate of 3.50%
  • Loan closes on 4/1/2013
  • Seller delivers loan to Freddie Mac on 5/1/2013
  • Price Lock Datetime to be delivered = "2013-03-15" because the rate changed with the extension

BedroomCount – Sort ID 77

This data point is required for a subject property that has been valued by an appraisal, either if the property is for investment purposes or if it has more than one dwelling unit. The number of bedrooms in each dwelling unit financed by the Mortgage should be captured. If only one unit is being financed as an investment, then the number of bedrooms for that unit should be delivered. If two or more units are being financed, then the number of bedrooms for each unit should be delivered.
EXCEPTION: If the unit is a studio or efficiency apartment, then "0" should be entered as the number of bedrooms.

Bedroom Count
 1-Unit2-Unit3-Unit4-Unit
Owner Occupied (Primary Residence) >Optional
(Owner-occupied Unit)
>Required
(if ≥ 2 units)
Required
(if ≥ 3 units)
Required
(if 4 units)
Investment (e.g., Rental Property) Required Required
(if ≥ 2 units)
Required
(if ≥ 3 units)
Required
(if 4 units)

PropertyDwellingUnitEligibleRentAmount – Sort ID 78

This data point is required for the subject property if the property is for investment purposes or it has more than one dwelling unit. If only one unit is being financed as an investment, enter the gross monthly rental income from the signed lease for that unit. If two or more units are being financed, then enter the gross monthly rental income from the signed lease for each unit. If a unit is not currently being rented, or if the unit is being rented to a family member, enter the estimated gross monthly rental income from the applicable appraisal document.

Rent Amount
1-Unit2-Unit3-Unit4-Unit
Owner Occupied (Primary Residence) N/A
(Owner-occupied Unit)
Required
(if ≥ 2 units)
Required
(if ≥ 3 units)
Required
(if 4 units)
Investment (e.g., Rental Property) Required Required
(if ≥ 2 units)
Required
(if ≥ 3 units)
Required
(if 4 units)

CreditRepositorySourceIndicator – Sort ID 582

The intent of the CreditRepositorySourceIndicator data point is to highlight if there was a credit repository source (e.g., Equifax, Experian or TransUnion) used to capture the representative credit score for the primary borrower and co-borrower(s). If so, Sellers must deliver "true" for this data point and also deliver the corresponding data point CreditRepositorySourceType – Sort ID 583 indicating the specific source. Note: For Legal entities (non-individual borrowers such as a Native American Tribe or Tribal Organization), the CreditRepositorySourceIndicator must be "false".

HMDARateSpreadPercent – Sort ID 208

The intent of the HMDARateSpreadPercent data point is to capture the difference between the annual percentage rate (APR) and the average prime offer rate (APOR).

This data point only needs to be provided for first lien mortgages when the HMDA Rate Spread Percent is greater than 1.5 percent.

Enter the spread (difference) between the APR on the Mortgage and the APOR. Do not enter either the APR or the APOR.

The HMDA Rate Spread Percent should be calculated consistent with the methodology provided in HMDA (Regulation C) and the requirements for determining Higher Priced Mortgage Loans (Regulation Z). For Mortgages with a rate spread reported under HMDA, a Seller should deliver to Freddie Mac the same rate spread reported under HMDA. The Federal Financial Institutions Examination Council (FFIEC) provides a rate spread calculator that should be used to generate the value entered in this field.

MICoveragePercent - Sort ID 416

This data point is required whenever there is mortgage insurance on a conventional (non-government) mortgage. It captures the percent of the note amount covered by the insurance on the mortgage. The requirements for the percentage of coverage are specified in the Freddie Mac Single-Family Seller/Servicer Guide.

TotalMonthlyProposedHousingExpenseAmount – Sort ID 292

The TotalMonthlyProposedHousingExpenseAmount data point is intended to reflect the total proposed housing expense related to the borrower's primary residence, regardless of the property usage type (primary, second home, or investment) of the subject loan. When the subject loan is the Borrower's primary residence, the TotalMonthlyProposedHousingExpenseAmount must be greater than or equal to the value delivered in Sort ID 268-InitialPrincipalAndInterestPaymentAmount.

More Information

Please review the updated Appendix A specification below and check the ULDD Web page on FreddieMac.com for regular, quarterly updates to help with your ULDD implementation efforts.

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