What is Freddie Mac prospector?
Loan Product Advisor is our enhanced automated underwriting system. It helps simplify your origination processes and provides you with greater certainty that your loans meet Freddie Mac eligibility requirements. Why the name change from Loan Prospector® to Loan Product Advisor?
What is LP in mortgage?
DU stands for Desktop Underwriter and LP stands for Loan Prospector. Loan originators use DU and LP to determine whether a loan meets Fannie Mae or Freddie Mac’s eligibility requirements which means DU or LP approval is a critical step towards closing on a mortgage.
What does LP risk class Caution mean?
For a Caution Mortgage that is not eligible for A-minus, the Caution Risk Class indicates that the Mortgage is unlikely to comply with Freddie Mac’s eligibility and underwriting requirements because there is a strong indication of excessive layering of risk as described in Section 5102.2.
What is MAF on LPA?
You will not receive Minimum Assessment Feedback (MAF) in stage 1 (Prequalification). If you do not enter the full Property Address (property address, city, state, county, zip code), then Loan Processing Stage defaults to Prequalification.
What is a loan Prospector?
Loan Prospector is an automated underwriting service that can provide the following: An evaluation of the borrower’s credit and collateral to help complete the loan application underwriting. A mortgage insurance certificate for qualifying loans. A merged credit report.
Is LP Freddie Mac?
LP, which stands for Loan Prospector, is the Freddie Mac automated underwriting service used by third-party loan originators and mortgage wholesale lenders that provides risk assessment for Freddie Mac’s credit and pricing terms.
Is Fannie Mae a LP?
Fannie Mae uses the automated underwriting system called Desktop Underwriter or DU, while Freddie Mac uses the AUS called Loan Prospector or LP.
What is the appraisal identifier in loan Prospector?
The Appraisal Identifier is the Document File Identifier (Doc File ID) that you receive from the UCDP. Please make sure the Appraisal Identifier in the selling system matches the Doc File ID in the UCDP and that the UCDP submission receives a “successful” status.
What is MAF on appraisal?
The type of appraisal report required depends on the property type and occupancy. The AU Feedback Certificate will contain a Minimum Assessment Feedback (MAF) indicating the level of inspection required for a particular transaction. The appraisal report obtained must meet or exceed in detail the MAF.
What does Fhlmc stand for?
Federal Home Loan Mortgage Corporation
As we mentioned earlier, Freddie Mac is not an actual person but is instead a variant of the initials of the company’s full name, the Federal Home Loan Mortgage Corporation or FHLMC. Freddie Mac was created in 1970 as part of the Emergency Home Finance Act.
Can you use LP for FHA loans?
This mortgagee letter announces that FHA has approved Freddie Mac’s Loan Prospector (LP) for use on FHA insured mortgages effective March 2, 1998.
How do you enter a gift in encompass?
– On page 1, if gift funds were used for the down payment, select Gift Funds from the Source of Down Payment list in the Property Information and Purpose of Loan section. – On page 2, in the Assets and Liabilities section, click Show all (VOD) to enter VODs for gift funds used to finance the loan.
What does du stand for in Loan Prospector?
Ever asked your loan officer what a DU or LP is, only to get an answer that left you more confused? You’re not alone. DU stands for Desktop Underwriter and LP stands for Loan Prospector. Both DU and LP are types of automated underwriting systems (AUS).
How does a loan officer work on a mortgage?
To start a mortgage application, the loan officer collects information from the borrower. This will include income, employment history, credit history, asset information, and more. Once this information is put into a loan origination system, it is imported into one of the automated underwriting systems, the LP or DU.
What are the requirements for a Freddie Mac loan?
Primary employment – history requirements In most instances, the borrower should have at least a two-year history of primary employment documented on Form 65, Uniform Residential Loan Application and verified in accordance with Topic 5300. November 2020 Freddie Mac Learning Page 5