Loan Prospector June 23 Release
April 24, 2013
In response to your feedback, we are working closely with you to help you create a more efficient loan manufacturing process that can provide greater purchase certainty in the loans you sell to Freddie Mac. To support this, we are implementing a series of Loan Prospector® updates to provide more details on Freddie Mac’s loan eligibility information. These updates will also support your success under the new representation and warranty framework. On June 23, 2013, we will update Loan Prospector to provide specific details in our purchase eligibility feedback messages.
Detailed Purchase Restriction Feedback Messages
Beginning June 23, 2013, loan submissions and resubmissions to Loan Prospector that are returned with a purchase restriction will receive enhanced purchase eligibility feedback messages. You will be able to use these messages to help determine why the loan is receiving a purchase restriction. The message enhancements include:
- Adding more loan product-specific purchase restriction information.
- Updating the messages to further align with purchase eligibility messages returned in the selling system.
- Providing detailed information about loan eligibility earlier in the loan origination process.
- For example, the current message indicates a total loan-to-value (TLTV) violation which requires additional analysis. The enhanced message provides the TLTV of the loan, the associated program, and what limit has been exceeded.
Mortgage Products That Will Receive the New Purchase Restriction Feedback Messages
The messages will provide specific information on what is causing the purchase restriction for the following mortgage products and/or combination of loan characteristics:
- LTVs, TLTVs, and HTLTVs for the mortgage type
- Freddie Mac Relief Refinance MortgagesSM
- Home Possible® Mortgages
- Investment Properties
- Super Conforming Mortgages
- Manufactured Homes
- 1-unit Primary Residences
- 2-4 unit Primary Residences
- Temporary Subsidy Buydowns
- Construction Conversion and Renovation Mortgages
To prepare for the Loan Prospector June 23 release:
- Check out a preview of the new purchase eligibility feedback messages.
- Review a sample Loan Prospector Full Feedback Certificate with the new feedback messages.
- Check out the Freddie Mac Learning Center for customer education resources and available training.