Loan Prospector® March 1 ReleaseFebruary 18, 2009
On March 1, to help you manage the impact at origination of several of our recent credit requirement changes, Loan Prospector® was updated to:
- Reflect the revised maximum LTV ratios for Home Possible® Mortgages and the elimination of most 40-year mortgages announced in our November 24, 2008 Single-Family Seller/Servicer Guide (Guide) Bulletin.
- Provide a new purchase restriction feedback message for Loan Prospector submissions of super conforming, 1-unit properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands that exceed the LTV/TLTV/HTLTV ratios outlined in our December 18, 2008 Guide Bulletin.
Revised Maximum LTV Ratios for Home Possible Mortgages
In our November 24, 2008 Guide Bulletin, Freddie Mac announced effective for Freddie Mac settlements on or after March 1, 2009, the following reduced maximum LTV ratios for purchase transaction and no cash-out refinance Home Possible Mortgages secured by 1-unit primary residences:
- 97%, for mortgages that receive a risk class of Accept from Loan Prospector
- 95%, for manually underwritten mortgages
On March 1, we updated Loan Prospector to align with these revised requirements. Based on the revised requirements, we also modified when Loan Prospector returns the following purchase restriction feedback message.
| Message Code | Feedback Message | Purpose |
|---|---|---|
| PUR 25 | LTV/TLTV exceeds product limits. | Indicates changes made to LTV/TLTV requirement if 97 percent limit is exceeded for Home Possible Mortgages. |
*This change applies for all Loan Prospector submissions, including new submissions and pipeline loans.
As a result of reducing the LTV ratio to 97 percent for Home Possible Mortgages, we retired Home Possible 100 Mortgages and Home Possible Neighborhood Solution 100 Mortgages and removed these offerings from Loan Prospector. On March 1, Loan Prospector was updated with the following new invalid feedback message to reflect the retirement of these offerings:
| Message Code | Feedback Message | Purpose |
|---|---|---|
| INV CK | HP100 or HPNS100 Offering Identifier is not valid. | Indicates Home Possible 100 or Home Possible Neighborhood Solution 100 Mortgages are no longer valid for assessment in Loan Prospector. |
*The new feedback message is returned on all applicable Loan Prospector submissions, including new submissions and pipeline loans.
Note: If you access Loan Prospector via the system-to-system access method, check with your loan origination system (LOS) vendor to find out when your system will be updated with the removal of these products. These products were removed from the Loan Prospector browser access method on March 1. Home Possible 97 Mortgages and Home Possible Neighborhood Solution 97 Mortgages are still available for assessment in Loan Prospector.
Elimination of Most 40-Year Mortgages in Loan Prospector
In our November 24, 2008 Guide Bulletin, we also announced the elimination of most 40-year mortgages, with the exception of Home Possible Mortgages secured by 1-unit primary residences or other affordable mortgages secured by 1-unit primary residences. This change is effective for Freddie Mac settlements on or after March 1, 2009.
On March 1, Loan Prospector was updated with the following new purchase restriction feedback message to reflect this change:
| Message Code | Feedback Message | Purpose |
|---|---|---|
| PUR 97 | Product is ineligible for 40-yr amortization. | Indicates 40-year mortgages are ineligible for purchase. |
*The new feedback message is returned on all applicable Loan Prospector submissions, including new submissions and pipeline loans.
New Feedback Message for Super Conforming Mortgages for Alaska, Hawaii, Guam and the U.S. Virgin Islands
Based on our super conforming mortgage requirements announced in our December 18, 2008 Guide Bulletin, we added a new purchase restriction feedback message.
The following new purchase restriction message is returned for Loan Prospector submissions of super conforming, 1-unit properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands that exceed the LTV/TLTV/HTLTV ratios as outlined in the December 18, 2008 Guide Bulletin:
| Message Code | Feedback Message | Purpose |
|---|---|---|
| PUR 98 | LTV/TLTV/HTLTV ratios exceed product guidelines. | Indicates LTV/TLTV/HTLTV ratios exceed super conforming loan limits. |
*The new feedback message is returned on all applicable Loan Prospector submissions, including new submissions and pipeline loans.
For More Information
Review:
- November 24, 2008 Single-Family Seller/Servicer Guide Bulletin
- December 18, 2008 Single-Family Seller/Servicer Guide Bulletin