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Enhanced Loan Prospector Outreach Usability Beginning June 22

June 22, 2014

We're working hard to improve Loan Prospector® Outreach’s overall usability and feedback messages. The latest set of enhancements went live on June 22, and will increase the efficiency of the tool and provide additional informational feedback.

We're reducing the number of steps you need to take when entering data to receive an assessment. And, we'll start highlighting data inconsistencies.

All of the changes we've made are part of our series of Loan Prospector Outreach enhancements designed to improve usability.

Specifically, here's what changed on June 22:

Loan Prospector OutreachWhat's Changed:
Income Losses Loan Prospector Outreach will accept submissions with negative income at the borrower level – for example from self-employed borrowers. This means you no longer need to enter a borrower's losses as modified income for a different borrower.

This change helps with accurate reporting of borrower income and improved borrower-specific income messaging from Loan Prospector Outreach. 
Assets Loan Prospector Outreach will accept submissions with no reported assets – for example, if the asset information wasn't provided on the loan application.

This change allows the reported assets to be consistent with the loan application.
No Cash-Out Loan Prospector Outreach will accept submission of no cash-out refinances with cash-out amounts greater than zero. If the cash-out amount exceeds the Guide requirement that allows for a nominal cash-out amount (lesser of $2,000 or 2% of the loan amount), a feedback message will be returned that the Guide requirement hasn't been met.

These changes allow additional Guide-compliant loans to be assessed in Loan Prospector Outreach.
Debt-to-Income (DTI) and Loan-to-Value (LTV) Data Checks Loan Prospector Outreach will highlight data inconsistencies that may impact DTI and LTV ratios. Feedback messages will be provided if Homeowner Association dues aren't entered when expected for the following property types: planned unit developments (PUDs), condominiums, or cooperative share mortgages; or when there is a balance for subordinate financing but no related housing expense (or vice-versa).

The feedback message alerts you to data inconsistencies, giving you the opportunity to take another look at the data.
Financed Mortgage Insurance (MI) Loan Prospector Outreach will provide a new feedback message for loans with financed MI.

The message will provide clarity on how Freddie Mac calculates LTV when there is financed MI on the loan.
Adjustable Rate Mortgage (ARM) Loan Prospector Outreach will provide a feedback message that highlights the subject property ARM qualifying principal, interest, taxes and insurance (PITI) used for DTI calculations for all mortgages. We are also revising an existing feedback message to remove the two-digit rounding feature on ARM qualifying rates.

This change expands the display of the ARM qualifying rate to three decimal places for ARMs with an initial adjustment period of five years or less.

Check out the enhanced underwriting feedback messages in the Excel or PDF formats.

Customer Support

If you have any questions about these updates, please contact the Freddie Mac customer support line dedicated to Loan Prospector Outreach at 866-733-0446, Monday-Friday, 8:00 am-8:00 pm (EST). Closed on New Year's Day; Martin Luther King, Jr. Day; Memorial Day; Independence Day; Labor Day; Thanksgiving; and Christmas Day.

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