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Loan Selling Advisor - New Critical Edits and Seller Pipeline Management

October 29, 2018

Homeownership Education

Effective November 29, 2018, warning edits in Loan Selling Advisor® will become critical edits if the following requirements are not met:

  • HomeOne℠ mortgages: When all borrowers on a purchase transaction HomeOne mortgage are first time homebuyers, at least one borrower must participate in an acceptable homeownership education program. Refer to Single-Family Seller/Servicer Guide (Guide) Sections 4605.2 and 5103.6 for additional details.
  • Home Possible® mortgages: When all borrowers on a purchase transaction Home Possible mortgage are first time homebuyers, at least one occupying borrower must participate in an acceptable homeownership education program. Refer to Guide Sections 4501.12 and 5103.6 for additional details.

For both HomeOne and Home Possible mortgages, Sellers must deliver the corresponding Counseling Confirmation Type (Sort IDs 576/577) and Counseling Format Type (Sort ID 578) for all borrower(s).

Income Commencing After the Note Date

Effective November 29, 2018:  As a reminder to our announcement in Guide Bulletin 2018-13, we’re removing the requirement that Investor Feature Identifier (IFI) H57 be delivered for mortgages originated using income commencing after the Note Date to qualify the borrower. You’ll receive a critical edit if IFI H57 is delivered.

Condominium Unit Mortgage Credit Fee in Price for Mortgages Sold for Cash

Effective January 21, 2019:  As announced in Guide Bulletin 2018-3, mortgages secured by detached condominium units are no longer assessed the Condominium Unit Mortgage Credit Fee in Price. For mortgages sold under the Cash program, Sellers must deliver ULDD Data Point Attachment Type (Sort ID 50) of “Detached”, and also deliver the value of “H04” in ULDD Data Point IFI (Sort ID 368), as per Guide Section 6302.20. You’ll receive a critical edit if you deliver IFI “H04” for condominium unit mortgages where the Attachment Type is not also “Detached”.

Due Date of Last Paid Installment (DDLPI) for Mortgages Sold for Cash

Loan Selling Advisor will require that the DDLPI, ULDD Data Point Last Paid Installment Due Date (Sort ID 440), be current as of the month of funding for all Cash loans.

For loans sold through Cash-Released XChange℠, when the funding date is after the 10th day of the month, the principal balance must be amortized down, even if the payment has not yet been collected. For these loans, the delivered DDLPI must correspond to the principal balance entered in Loan Acquisition Scheduled UPB Amount (Sort ID 385). For assistance in delivering the DDLPI, refer to Chapter 2, Deliver a Scheduled UPB and Valid DDLPI of the Servicing Transfer Instructions User Guide, available through Loan Selling Advisor.

Beginning February 11, 2019, loans that do not meet this requirement will receive a warning edit, which will become a critical edit beginning early April 2019.

Seller Pipeline Management

As announced in Guide Bulletin 2018-12, in continued support of Seller pipeline management, Loan Selling Advisor has been updated to automatically delete all Best Efforts contracts and mortgages that are in a contract status of “Unfulfilled” for six months from the contract expiration date, and do not have a built Form 1034E, Custodial Certification Schedule. We’ll delete outdated pipeline Best Efforts contracts and mortgages over time.

As a best practice, Sellers should conduct routine maintenance on their loan pipeline, including deleting loans that are invalid, unallocated from a contract, or which you no longer intend to sell to Freddie Mac. Follow these steps in Loan Selling Advisor to delete loans:

  • Go to “View Loan Pipeline”
  • Check “Unallocated Loans”
  • Click “Additional Fields”
  • In the “Create Date” field enter the date range of inactive loans you wish to view, and click “Search”
  • View Search results and click the checkbox to select the loans you wish to delete
  • Click Delete

For More Information