Run with Opportunity
Don't miss a homeownership opportunity. Top ways to clear Cautions in Loan Product Advisor® (LPA®).
Getting a Caution risk class in Loan Product Advisor is not rejection. It’s a redirection to uncover missed opportunities that are more tailored for your borrower. Check back frequently for updated tips and resources.
Feedback, Evolved
A redesigned feedback certificate helps speed up your intake of essential information -- giving you more opportunities to make home possible.
Updates include:
- Prioritizing actionable information first and reducing white space
- Updating labels to align with industry terms
- Standardizing feedback messages to improve readability
- Additional enhancements coming soon
Note: Adoption of LPA specification v6.0 is required to take advantage of these updates.
Better Prepare Your Borrower with Early Insights
Have a borrower interested in buying a home but isn’t ready to complete a full loan application? LPA check helps provide an early look into whether a loan may receive an “Accept” risk class and appraisal waiver eligibility with the fewest data points required.
Loan Status
Make sure the loan has a “Prequalification” status in LPA.
Guidance for Next Steps
If an Accept risk class is received, proceed with confidence knowing you have an early view of all your borrower’s options, including whether they may qualify for an appraisal waiver.
If a Caution risk class is received, look for LPA ChoiceSM messages to help identify areas where you may be able to provide information to turn the Caution risk class into an Accept risk class.
How This Helps Get to Accept
LPA check gives an early indication of whether the loan may receive an Accept risk class for conventional purchases, refinances and ARMs.
Please note that a full LPA submission is still required before delivering the loan to Freddie Mac.
Identify R&W Relief Eligibility Faster
A new indicator shield helps you determine right away whether a loan is eligible for employment representation and warranty (R&W) relief. New corresponding loan-level messages will also indicate eligibility.
Locate the Shield
Look in the Representation & Warranty Relief section of the feedback certificate for a new indicator shield noting that the loan is eligible for employment R&W relief.
Guidance for Next Steps
Check the feedback certificate to see if your borrower is eligible for any additional R&W relief. Additional opportunities include collateral, income and asset.
How This Helps Get to Accept
R&W relief helps lenders streamline the underwriting process and close with confidence.
Getting to Accept Just Got Easier
LPA ChoiceSM: feedback messages that provide unprecedented, actionable information, giving you opportunities to make faster, more informed decisions to turn Cautions to Accepts. Messages offer dynamic data points for DTI, LTV and reserves.
Locate the Message Code
Look in the Credit and Liabilities section for messages FCL0434, FCL0435 and/or FCL0436 that provide the specific additional qualifying income, down payment or reserves required.
Guidance for Next Steps
Help the borrower fulfill the requirement and ask them:
- Have they disclosed all income sources?
- Are there any gifts, grants or additional cash they can put towards the down payment?
- Have they disclosed all their available reserves?
How This Helps Get to Accept
Lowering the DTI, LTV/TLTV or adding additional reserves may help you meet underwriting guidelines.