Revised Messages - Freddie Mac

Message Message

Original or Existing Message Text

Category Code

(if applicable)

Revised Messages

LPN

K0 (zero) Review for Accuracy: FHA Underwriting

Guidelines vary for New Construction and may

affect Maximum Mortgage calculations/LTV.

Refer to Handbook and review corresponding

Assessment expiration date on feedback

certificate.

New Message Text

Review for Accuracy: FHA Underwriting Guidelines vary for New Construction and may affect Maximum Mortgage calculations/LTV %). Please consult the FHA Handbook 4000.1, Section II, and review corresponding Assessment expiration date on feedback certificate.

Feedback Certificate, Error

Page

Purpose

Feedback Certificate Change to edit to align with HUD Handbook 4000.1

LPN

VJ

The FHA Upfront Mortgage Insurance Premium The FHA Upfront Mortgage Insurance Premium (UFMIP) Factor Feedback Certificate Same as above.

(UFMIP) Factor is ~UPFMIP~%.

is (x.xx)% (except for Simple Refinances). If this is a Simple

Refinance Loan, the UFMIP is 1 (BPS) (.01%). Please consult

the FHA Handbook 4000.1, Appendix 1.0 for additional

information.

LPN

VK

The FHA Annual Premium Factor is

~AnnualMIP~%.

The FHA Annual Premium Factor is (x.xx)% (except for Simple Feedback Certificate Refinances). If this is a Simple Refinance Loan, the FHA Annual Premium Factor is 55 (BPS) (0.55)%. Please consult the FHA Handbook 4000.1, Appendix 1.0 for additional information.

Same as above.

DOC

AP

If more than 7 months have elapsed since

Balance Sheet and YTD P&L Statement: If more than 7 months Feedback Certificate Same as above.

business tax year ending date, and income to have elapsed since business tax year ending date, and income

self-employed borrower, {self-employed

to self-employed borrower, ~SlfEmpBorr~, from each individual

borrower }, from each individual business, is business, is greater than 5% of his/her stable monthly income,

greater than 5% of his/her stable monthly

obtain balance sheet and YTD P&L statement.

income, obtain balance sheet and YTD P&L

statement.

WEB

SK

Balance Sheet and YTD P&L Statement: If > 7 ^^Balance Sheet and YTD P&L Statement: If more than 7

Documentation

Same as above.

months have elapsed since business tax year months have elapsed since business tax year ending date, and Checklist

ending date, and income to ~SlfEmpBorr~, from income to self-employed borrower, ~SlfEmpBorr~, from each

each individual business is > 5% of his/her

individual business, is greater than 5% of his/her stable

stable monthly income.

monthly income, obtain balance sheet and YTD P&L statement.

Page 1

Message Category DOC

Feedback

Message

Original or Existing Message Text

Certificate, Error

Code

(if applicable)

New Message Text

Page

BH

If using alimony/child support income to qualify, Alimony/Child Support: If Alimony/Child Support is being used Feedback Certificate

obtain most recent 3 months bank statements or to qualify, obtain divorce decree or court order or legal

canceled checks or court payment record and separation or voluntary agreement signed by the judge to verify

evidence of 3 year continuance.

the amount and 3 years continuation. Also, obtain most recent

3 months bank statements, cancelled checks, or court payment

record to confirm receipt of payment.

Same as above.

WEB

W3

Alimony/Child Support Income: Most recent 3 ^^Alimony/Child Support: If Alimony/Child Support is being

Documentation

months bank statements or canceled checks or used to qualify, obtain divorce decree or court order or legal Checklist

court payment record and evidence of 3 years separation or voluntary agreement signed by the judge to verify

continuance if using income to qualify.

the amount and 3 years continuation. Also, obtain most recent

3 months bank statements, cancelled checks, or court payment

record to confirm receipt of payment.

Same as above.

DOC

DL

Obtain most recent 2 years W-2(s) to verify

Employed: If borrower not employed with same employer for Feedback Certificate Same as above.

current and previous employment for

the previous 2 years, obtain most recent 2 years W-2(s) and

~EmplBorr~.

written VOE or electronic verification to confirm to confirm for

~EmplBorr~.

WEB

SB

^^Employed: If borrower not employed with same employer for Documentation

Same as above.

W-2's: Most recent for 2 years for {employed the previous 2 years, obtain most recent 2 years W-2(s) and Checklist

borrower }.

written VOE or electronic verification to confirm to confirm for

~EmplBorr~.

DOC

DN

Obtain most recent 2 years signed individual Self Employed: Obtain most recent 2 years signed and dated Feedback Certificate Same as above.

federal income tax returns for self-employed individual federal income tax returns for ~SlfEmpBorr~.

borrower, ~SlfEmpBorr~.

WEB

SD

Obtain most recent 2 years signed individual ^^Self Employed: Obtain most recent 2 years signed and dated Documentation

Same as above.

federal income tax returns for self-employed individual federal income tax returns for ~SlfEmpBorr~.

Checklist

borrower, ~SlfEmpBorr~.

DOC

KA

Lender is responsible for documenting any

Lender is responsible for documenting any situation not

Feedback Certificate Same as above.

situation not addressed on this feedback

addressed on this feedback certificate according to the FHA

certificate according to the FHA TOTAL

TOTAL Mortgage Scorecard User's Guide and/or HUD

Mortgage Scorecard User's Guide and/or HUD Handbook 4000.1, Section II, FHA Single Family Housing

Handbook 4155.

Policy Handbook.

WEB

VA

Lender is responsible for documenting any

Lender is responsible for documenting any situation not

Documentation

Same as above.

situation not addressed on this feedback certificate according to FHA TOTAL Mortgage

addressed on this feedback certificate according to the FHA TOTAL Mortgage Scorecard User's Guide and/or HUD

Checklist

Scorecard User's Guide and/or HUD Handbook Handbook 4000.1, Section II, FHA Single Family Housing

4155.

Policy Handbook.

Purpose

Page 2

Message Category DOC

Feedback

Message

Original or Existing Message Text

Certificate, Error

Code

(if applicable)

New Message Text

Page

MX

If income to borrower from an individual

Self Employed: If ~SlfEmpBorr~ receive more than 5% of their Feedback Certificate

business is greater than 5% of borrower's stable stable monthly income from an individual business, obtain most

monthly income, obtain most recent 2 years

recent 2 years signed federal business tax returns for each self-

signed federal business tax returns for each employed borrower.

business for self-employed borrower,

~SlfEmpBorr~.

Same as above.

WEB DOC

VP

If income to borrower from an individual

^^Self Employed: If ~SlfEmpBorr~ receive more than 5% of Documentation

Same as above.

business is greater than 5% of borrower's stable their stable monthly income from an individual business, obtain Checklist

monthly income, obtain most recent 2 years

most recent 2 years signed federal business tax returns for

signed federal business tax returns for each

each self-employed borrower.

business for self-employed borrower, {self-

employed borrower }.

MW

If borrower receives commission income greater If borrower receives commission income greater than 25% of Feedback Certificate Same as above.

than 25% of his/her annual income, obtain most his/her annual income, obtain most recent 2 years signed

recent 2 years signed individual federal income individual federal income tax returns and consider business

tax returns and consider business expenses in expenses in underwriting, or the mortgagee may obtain a

underwriting.

signed IRS Form 4506, Request for Copy of Tax Return, IRS

Form 4506-T, Request for Transcript of Tax Return, or IRS

Form 8821, Tax Information Authorization, and tax transcripts

directly from the IRS.

Purpose

WEB

VN

If borrower receives commission income greater If borrower receives commission income greater than 25% of Documentation

Same as above.

than 25% of his/her annual income, obtain most his/her annual income, obtain most recent 2 years signed

Checklist

recent 2 years signed individual federal tax

individual federal income tax returns and consider business

returns and consider business expenses in

expenses in underwriting, or the mortgagee may obtain a

underwriting.

signed IRS Form 4506, Request for Copy of Tax Return, IRS

Form 4506-T, Request for Transcript of Tax Return, or IRS

Form 8821, Tax Information Authorization, and tax transcripts

directly from the IRS.

Page 3

Message Category DOC

Feedback

Message

Original or Existing Message Text

Certificate, Error

Code

(if applicable)

New Message Text

Page

U9

If the credit report reveals that the borrower is If the credit report utilized by TOTAL indicates that the

Feedback Certificate

disputing any credit accounts or public records, borrower has $1,000 or more collectively in Disputed

the mortgage loan application must be referred Derogatory Credit Accounts, the mortgage must be

to a DE underwriter for review, unless the

downgraded to a Refer and manually underwritten. Exclusions

disputed account has a zero balance; is marked include disputed medical accounts or disputed derogatory

as 'paid in full' or 'resolved'; or has both a

credit resulting from identity theft, credit card theft or

balance less than $500 and the date of the

unauthorized use. Please consult the FHA Handbook 4000.1,

dispute is more than 24 months old.

Section II for full details.

Same as above.

Purpose

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