I wanted to make you aware that there are some changes coming to LP (Loan Prospector). Please read the following:
On December 13, we’re updating Loan Prospector to align with previously announced underwriting and credit requirement changes. To help you identify these changes at origination, Loan Prospector will be updated with new and revised feedback messages to reflect:
• Revised underwriting requirements announced in our July 10 Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-18.
• Revised credit and property eligibility requirement changes announced in August 20 Guide Bulletin 2009-22 and October 9 Guide Bulletin 2009-24.
We are also updating Loan Prospector to reflect the reduced maximum loan-to-value (LTV) ratios for all cash-out refinance mortgages secured by 1-unit primary residences announced in the October 9 Guide Bulletin 2009-24.
New and Updated Feedback Messages to Support Revised Underwriting Requirements
On December 13, we are adding new and updated Loan Prospector feedback messages to provide you with additional guidance on our revised underwriting requirements announced in our July 10 Guide Bulletin 2009-18 for employment, income and assets. As announced in our October 9 Guide Bulletin 2009-24, these changes are effective for all mortgages with application dates on or after December 14, 2009, and Freddie Mac settlement dates on or after April 1, 2010.
Review the attached at-a-glance chart for the new and updated feedback messages, effective on December 14 for all Loan Prospector submissions, including new submissions and pipeline loans.
We encourage you to begin underwriting mortgages with the underwriting requirements announced in the HYPERLINK "http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0918.pdf"July 10 Guide Bulletin 2009-18 prior to the December 13 Loan Prospector release to strengthen your origination process and enhance the quality of mortgages you deliver to Freddie Mac. For assistance, please use the Loan Prospector Processing Reminders for Mortgages With Submission Dates Prior to December 14, 2009 tool. This tool provides the necessary information to apply the manual overlays and manage the existing Loan Prospector feedback messages.
New and Updated Feedback Messages to Reflect Recent Single-Family Seller/Servicer Guide Changes
On December 13, we are also updating Loan Prospector with the following new and updated feedback messages to support credit and property eligibility requirement changes announced in the August 20 Guide Bulletin 2009-22 and October 9 Guide Bulletin 2009-24.
The new and revised feedback messages are effective for all new submissions and resubmissions on or after December 14, 2009.
Updating Loan Prospector to Align With Revised Loan-to-Value Ratios for Cash-Out Refinance Mortgages
In our October 9 Guide Bulletin 2009-24, we lowered the maximum loan-to-value (LTV) without and with secondary financing/total LTV (TLTV)/home equity line of credit TLTV (HTLTV) ratios for cash-out refinance mortgages secured by one-unit primary residences from 85%/80%/85%/85% to 80%/75%/80%/80%. This change is effective for mortgages with settlement dates on or after February 1, 2010.
On December 13, we will update Loan Prospector to align with the new ratios. On or after December 13, if you resubmit a cash-out refinance mortgage using the higher LTV ratio, you will receive the following purchase restriction message:
Message Code Feedback Message Purpose
PUR 25 LTV/TLTV exceeds product limits. Indicates the LTV/TLTV/HTLTV ratios exceed Freddie Mac’s limit on a 1-unit cash-out refinance.
You may disregard this message if the mortgage:
• Has a settlement date before February 1, 2010.
• Meets the LTV/TLTV/HTLTV ratios in effect prior to this date.
Please review the Guide section 23.4 for the maximum LTV/TLTV/HTLTV ratios for cash-out refinance mortgages with Freddie Mac settlement dates on or after February 1, 2010.
Have a Happy Thanksgiving
What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com
4 comments:
fha programs and freddie mac? what an odd combination
Good post. It’s amazing how many realtors post complete junk. Some people spend zero time and effort on
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