Correspondent XChangeSM Functionality Manual · March 2020 Freddie Mac Learning Correspondent XChangeSM Functionality Manual This reference is designed to help you with instructions

August 2020 Freddie Mac Learning Page 2

Correspondent XChange Functionality Manual

This reference is designed to help you with instructions and tips on Freddie Mac’s Correspondent XChangeSM

online tool which allows you to easily transfer your loans to an aggregator. The following topics are included:

Table of Contents

Overview of Correspondent XChange ............................................................................................................... 1

Originator Pipeline Process Flow for the Correspondent XChange ................................................................ 1

Originator Pipeline, Navigation and Functions ................................................................................................. 3

Create and Access Loans in Loan Selling Advisor ............................................................................................ 6

Assess Loans ........................................................................................................................................................ 7

View Assessment Issues ..................................................................................................................................... 8

View/Modify Loans ............................................................................................................................................ 11

Submit Loans to an Aggregator ....................................................................................................................... 12

View Loans Submitted to an Aggregator ........................................................................................................ 13

View Loans Transferred to an Aggregator ...................................................................................................... 14

Delete Loans ....................................................................................................................................................... 16

Export .................................................................................................................................................................. 16

Customized Data Sets ........................................................................................................................................ 18

Overview of Correspondent XChange

Freddie Mac’s Correspondent XChange is an online tool designed to assist you with managing and monitoring

loans you transfer to an aggregator. You’ll use the Third Party functions in Loan Selling Advisor® to manage and

transfer your Correspondent XChange transactions. With this service, you can take advantage of the technology

capabilities you need to make transferring loans easy, convenient, and seamless.

After you create and save a loan in Loan Selling Advisor, you will use the Third Party, Manage Originator Pipeline

functions for the loans you intend to transfer and sell to an aggregator. The aggregator will review the loan data

in your Third Party pipeline and select the loans that are eligible for purchase. Under this arrangement, the

Originator must comply with the requirements of the tri-party agreement including, Section 10, (i) through (iv)

which contains: Loan Selling Advisor User Agreement, Consent to Electronic Transactions, Incorporation of Loan

Selling Advisor, Special Warranties and Representations and The Correspondent XChange Functionality

Amendments.

Originator Pipeline Process Flow for the Correspondent XChange

Loan Selling Advisor’s Third Party menu function, Originator Pipeline, simplifies the process of

submitting and transferring loans to an aggregator.

1. You will start by the process by creating and saving loans in Loan Selling Advisor. Options to

create loans include:

o Import loans using the Uniform Loan Delivery Dataset (ULDD) in XML format.

o Use the Loan Selling Advisor function to import loans from Loan Product Advisor®

o Manually create loans in Loan Selling Advisor

2. Access the Third Party menu function of, Manage Originator Pipeline functions to do the

following:

o Evaluate loans. Loans are evaluated against the aggregator’s terms of business. Loans

that pass purchase edits will display as compliant. Loans with critical edits display as non-

compliant. (To clear critical edits or warning messages, re-import updated loans or use the

view/modify functions to edit loan data and re-evaluate loans.) Loans should be compliant

before you submit them to the aggregator.

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o Send loans to the aggregator. The aggregator has the option to accept or reject the submitted loans.

Originator Pipeline, Navigation and Functions

You’ll use the Originator Pipeline functions to access and manage your Correspondent XChange loans.

1. To access the Originator Pipeline, from the main menu, click Third Party and then click Manage Originator

Pipeline.

The Originator Pipeline page displays. It is the gateway to the functions you’ll use to manage and transfer

loans to the aggregator. It contains the status tabs of Candidate and Rejected, Submitted and Transferred.

When you arrive in this page, the system defaults to the Candidate & Rejected tab.

2. Click the tab name and complete the search criteria fields to search for loans. The search fields will vary

depending on the tab you select. Click List Loans.

If you want to search for a rejected loan, click the Candidate & Reject tab, then click the Loan Transaction

Status of Rejected. The example below depicts the Candidate & Rejected tab.






Refer to the table below for a description of each status tab.

Originator Pipeline Status Tabs

Tab Name Description

Candidate &

Rejected

• Candidate indicates the loans are new or non-transferable. These loans

have not been submitted to an aggregator and are also visible in your

regular loan pipeline.

• Rejected indicates an aggregator has rejected the loans. Click the

“Rejected” status to view the reason for rejection.

Submitted Indicates the loans have been submitted to an aggregator and are waiting to be

accepted or rejected.

Transferred Indicates loans are compliant and have been accepted by an aggregator. It also

indicates non-compliant loans that have been transferred.

3. The page refreshes with your search results and includes:

a. Action buttons you’ll use to perform specific functions

b. A table that contains status and general loan and/or contract information






See the table below for a description of each action button. The buttons may differ depending on the tab you are

viewing.

Originator Pipeline Action Buttons

Button Name Tab Name Description of Action

Evaluate Candidate &

Rejected

Evaluates the selected loans against Freddie Mac’s purchase edits and

the selected aggregator’s terms of business. If you evaluate loans

from a location other than the Originator Pipeline, it is important to

remember that the loans will be evaluated against Freddie Mac’s

purchase edits and your company’s terms of business (not the

aggregator’s).

Send to

Aggregator

Candidate &

Rejected

Selected loans are evaluated and moved to the Submit Verification

page to complete the submission to the aggregator or cancel the

transaction.

View Evaluation

Issues

Candidate &

Rejected

Displays evaluation issues for the selected loans you have evaluated.

The most recent evaluation occurrence will display. The loans will be

sorted by Seller Loan Identifier number order. If there are no critical

messages, nothing will display for that loan.

View/modify Candidate &

Rejected

Allows loans to be viewed or modified. You will be able to modify

loans in the candidate and rejected status. You are not permitted to

modify submitted or transferred loans.

Delete Candidate &

Rejected

Deletes loans from Loan Selling Advisor. You can only delete

candidate or rejected loans. Loans in any other status may not be

deleted.

Export All tabs Exports certain loan data using a data set or a customized data set

based on your export criteria.

Send Candidate &

Rejected

Executes the Evaluate and Send to Aggregator action. Note, if the

selected loans have been previously evaluated, this action will re-

evaluate those selected loans and submit to the aggregator.

Remove from

View

Transferred Remove the loan from the search results you are viewing.

Search tab results displays general loan, contract and status information. The table below describes each column

and the tab which they display. Click the blue column headers to sort information in ascending/descending order.

Tab Name Column Title Description

All tabs Seller Loan Identifier The loan identifier assigned to the Originator by the

Aggregator. Click the loan identifier, a hyperlink, to

access the Modify Loan page.

All tabs Last Name Borrower’s last name.

Candidate & Rejected Loan Transaction Status Candidate or Rejected. If the status is Rejected, click

the hyperlink to view a window that displays the

reason for the rejection.

Candidate & Rejected Loan Created Date The date the loan was created or saved in Loan

Selling Advisor.






Tab Name Column Title Description

All UPB Amount The unpaid principal balance of the loan.

Candidate & Rejected Certified The certification status of the loan: Y = Yes, N = No.

All tabs Interest Rate The interest rate percent for the loan.

Candidate & Rejected Aggregator Cleared Edits Indicates if the loan passed the aggregators critical

edits: Y = Yes, N = No.

All tabs R&W

Relief/Representation and

Warranty Relief

Indicates the following Representation and Warranty

Relief types and their status:

• CO = Collateral

• IN = Income

• AS = Asset

The following statuses display as a hyperlink. Click

the link to view details:

• Y = Yes

• N = No

• U = Unavailable

All Loan Referenced Product

Label

System derived loan product.

Submitted Loan Submitted Date Date loan was submitted to the Aggregator.

Submitted Submitted To Aggregation Name and ID number.

Transferred Loan Transfer Date Date the loan was transferred to the aggregator.

Transferred Loan Transfer Type Compliant or non-compliant.

Create and Access Loans in Loan Selling Advisor

When you create and save a loan in Loan Selling Advisor, it must contain the aggregator assigned loan number

(issued at time of loan lock and/or registration with the aggregator) in the ULDD data point, Seller Loan Identifier

(Sort ID #402). For detailed instructions on how to create and save loans, access Online Help by clicking the icon

in Loan Selling Advisor or access the Create and Modify Loans tutorial.

Loans can be accessed in the Originator Pipeline after they are saved in Loan Selling Advisor.

Note: It is important to note that loans not allocated to either a Freddie Mac contract or to an

aggregator, will display in both the Loan Pipeline (available via the Loans menu) and the

Originator Pipeline (available via the Third Party menu). Therefore, be sure to manage your

pipelines and delete loans that you do not intend to transfer to an aggregator.




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Assess Loans

You must assess loans, known in Loan Selling Advisor as “evaluate” and clear critical assessment edits before

you submit the loans to your aggregator. The Originator Pipeline allows you to assess your loans against the

aggregator’s terms of business. This step must be completed prior to submitting loans to the aggregator. This

step prevents you from submitting ineligible loans, reduces time spent on resolving loan data issues, and

facilitates a more streamlined loan data transfer process.

Note: If you assessed loans upon import, they were assessed against your company’s terms of

business and not the aggregator’s. You must then re-assess the loans before they are

submitted to the aggregator.

Perform the following procedure to evaluate your loans.

1. From the main menu, select Third Party, and then select Manage Originator Pipeline. The Originator

Pipeline: Candidate & Rejected page displays.

2. Enter your search criteria.

3. Click List Loans. The Originator Pipeline: Candidate & Rejected page lists the loans that meet your search

criteria. Your search results will display.

Step 2

Step 3






Note:

Note:

Note:

The links at the top of the columns can be used to sort your loan data.

If a loan is rejected, go to the Loan Transaction Status column and click the Rejected link

to view the date, time and reason for rejection.

The R&W (Representation and Warranty) Relief link allows you to view Collateral, Income,

and Asset Representation & Warranty Relief Summary Information for all loans

displaying in the results.

4. Select the loans to assess.

5. Select the Evaluate button to assess loans.

Note: Loans originally underwritten by Desktop Underwriter (DU) must be subsequently submitted

through Loan Product Advisor or Loan Quality Advisor. If you are submitting DU loans, see section titled

Data Required for Loans Underwritten through Desktop Underwriter.

6. Select the aggregator from the drop down menu.

7. Click Send. The Originator Pipeline: Candidate and Reject page re-displays indicating if loans cleared the

aggregator’s edits in the Aggregator Edits Cleared column.

Note: “Y” indicates the loan did clear critical edits. “N” indicates the loan did not clear critical

edits. This column also shows the aggregator’s name. You can view the loans that did

not clear edits by selecting them and clicking View Evaluation Issues.

Data Required for Loans Underwritten Through Desktop Underwriter

For loans underwritten through Desktop Underwriter, deliver the applicable data in the Underwriting Details and

Product Details sections of the “Loan” page as follows:

• For the Underwriting Details section, deliver the required fields as shown in the table below. The table that

follows lists the Loan Selling Advisor data field name, sort ID and the valid value.

Loan Selling Advisor Data Field Name Sort

ID

Loan Selling Advisor valid value for loans

submitted through…

Loan Product Advisor Loan Quality Advisor

Automated Underwriting System Type 326 Loan Product Advisor Desktop Underwriter

Loan Manual Underwriting Indicator 328 False False






Loan Selling Advisor Data Field Name Sort

ID

Loan Selling Advisor valid value for loans

submitted through…

Loan Product Advisor Loan Quality Advisor

Automated Underwriting

Recommendation Description

325 Accept Approve Eligible

Automated Underwriting Case Identifier 322 LPA AUS Key Number Leave blank

Also see the example below of the Underwriting Details section depicting a loan previously submitted

through Loan Quality Advisor.

• For the Product Details section, deliver the applicable Investor Feature Identifier (IFI) to indicate whether

the loan was subsequently submitted through Loan Product Advisor or Loan Quality Advisor. The table

that follows lists the applicable IFI, the underwriting system and underwriting decision or risk assessment

values.

Investor Feature

Identifier

Underwriting System Underwriting Decision or Risk Assessment

H89 Loan Product Advisor Decision of Accept

H99 Loan Quality Advisor Decision of “Green”, which indicates the loan

would have received an “Accept” decision if it had

been underwritten through Loan Product Advisor.

Also see the example of the Product Details section of the “Loan” page which contains the Investor

Feature Identifier data field(s).

• Loans with outstanding critical edits cannot be submitted to the Aggregator.






View Assessment Issues

Assessment issues are known in Loan Selling Advisor as Evaluation Issues and they are classified as either critical

errors or warnings. Critical errors will prevent loans from being accepted by the aggregator and will display as

non-compliant if submitted to the aggregator. Perform the following procedure to view evaluation issues.

1. From the Originator Pipeline – Candidate & Rejected page, enter your search criteria

2. Click List Loans. The page lists the loans that meet your search criteria.

3. Select the loans to view the evaluation issues.

4. Click View Evaluation Issues. The View Aggregator Evaluation Issues page displays showing Critical

Errors and Warnings for the selected loans.

5. You may print the page by clicking Print Preview. The evaluation issues display in a separate window.

Click File and Print in your browser menu to print the issues.

Step 3

Step 4






6. You may also export the file by clicking Export Evaluation Issues File.

View/Modify Loans

You can make changes to loans that did not pass evaluation edits or loans that need to be updated or modified.

Perform the following procedure to view and/or modify loans in your originator pipeline.

1. From the Originator Pipeline – Candidate & Rejected page, enter your search criteria.


3. Select the loans to view or modify.

Note: If you only want to view or modify one loan, you may click the Seller Loan Identifier

link for that loan and skip to step 6.

4. Click View/Modify. The Modify Loan page displays for the selected loans. Loans will display in Seller Loan

Identifier number order.

Step 3

Step 4






5. Make your changes (if any) to your loan information.

6. Click Finish to save your first loan and continue to the additional loans that need modifications. The next

loan will display.

Note: Click Next Loan (No Save) if you have additional loans that need modifications, but you are

not making any modification to the current loan.

7. Click Finished once complete and you will return to the Originator Pipeline: Candidate & Rejected page.

Note: Remember to click Evaluate to re-evaluate loans if you made any changes. Repeat steps

1-7 if critical errors remain.

Submit Loans to an Aggregator

Submitting loans to an aggregator is how you will transfer loans from your pipeline to the aggregator’s pipeline

so they can accept or reject your loans.

Perform the following procedure to submit your loans to the aggregator.

1. From the Originator Pipeline – Candidate & Rejected page, enter your search criteria.


3. Select the Send to Aggregator button.

4. Select the aggregator from the drop down menu.

5. Select the loans to send to the aggregator.

6. Click Send. The Review Compliant and Non-Compliant Loans to be sent to Aggregator page displays.

Step 6

Step 7






Note: Remember, non-compliant loans are loans that did not pass the aggregator’s purchase

edits. You should de-select non-compliant loans before clicking Submit. To clear the

purchase edits, view critical messages, modify the loan, re-evaluate the loans and re-

submit.

Note: If a loan that previously passed purchase edits displays as non-compliant, modifications

have been made to prevent that loan from passing purchase edits. Loan Selling Advisor

automatically runs purchase edits during the submission process when you click Send.

Therefore, these loans will display as non-compliant. Correct the errors, then re-submit.

Note: There are various reasons why a loan is Non-Transferable. For example, you entered

settlement details in error. If a loan is Non-Transferable, it will revert to “Candidate”

status. Print this page if you have a Non-Transferable loan for your records because the

reason will not display on any other page.

7. Select the compliant loans to send to the aggregator. Click Select All to select all loans in a section.

8. Click Submit. The Originator Pipeline Submit/Transfer Confirmation page displays.

9. Click <Back to Originator Pipeline to return to the pipeline.

View Loans Submitted to an Aggregator

Loans submitted to an aggregator are loans that are waiting to be accepted or rejected by the aggregator. Perform

the following procedure to view loans submitted to the aggregator.

Step 9






1. From the Originator Pipeline – Candidate & Rejected page, click the Submitted tab at the top of the page.

The Originator Pipeline: Submitted page displays.


3. Click List Loans. The loans that meet your search criteria display at the bottom of the page.

Note: You have the option to export the loan data by selecting the loans you wish to export

and clicking the Export button. For more information on exporting, review the Export

section in this reference guide.

View Loans Transferred to an Aggregator

Step 1

Step 3

Step 2






Loans transferred to an aggregator are loans that have been accepted by the aggregator. Perform the following

procedure to view loans that have been transferred to the aggregator.

1. From the Originator Pipeline - Candidate & Rejected page, click the Transferred tab. The Originator

Pipeline: Transferred page displays.


3. Click List Loans. The Originator Pipeline: Transferred page lists the loans that meet your search criteria.

Loans will remain on this page until they are removed from view.

4. To remove the loans from view, click Remove from View.

Note: Loans will remain in the transferred page until they are removed from view. Once a loan

is removed from view, you will not be able to retrieve this data. You also have the option

Step 4

Step 1

Step 3

Step 2






Delete Loans

You may only delete loans in the Candidate & Rejected loans status. Perform the following procedure to delete

loans from your originator pipeline.

1. From the Originator Pipeline: Candidate & Rejected page, enter your search criteria.

2. Click List Loans. The Originator Pipeline: Candidate & Rejected page lists the loans that meet your search

criteria.

3. Select the loans to delete.

4. Click Delete. You will get a message stating “Are you sure you want to delete the selected loan(s)?

5. Click OK to delete your selected loans.

Export

You can export data from Loan Selling Advisor using pre-set data sets, or you can create customized data sets.

Follow the steps below to export data:

to export the loan data by selecting the loans you wish to export and clicking Export. For

more information on exporting, review the Export section in this reference guide.

Note: Any non-compliant loans transferred in error would also display in the Transferred tab.

Note: Remember loans rejected by your aggregator will display under the Candidate & Rejected

tab in the Originator Pipeline.

Step 2 Step 4

Step 3






1. From the Originator Pipeline page, click the tab name for the type of loans you want to export; Candidate

& Rejected, Submitted or Transferred. The example below depicts, the Candidate & Rejected tab.



4. Select the loans to export.

5. Click Export. Export Data page displays and defaults to the Loan Delivery Data MISMO 3.0 data set

6. If you want to export a different data set, select it from the Data Set drop down menu.

7. Select a File Format from the drop down menu.

8. Click Create Export File. The View Export Results page displays showing Pending in the Status column.

Step 3

Step 6

Step 7

Step 8

Step 5

Step 4






9. Click Refresh File Status until Completed shows in the Status column.

10. Click the File Name of the file to export in the File Name column. The Open/Save options window displays.

11. Click the button that represents your choice.

Customized Data Sets

You can create customized export reports using a mix of data from pre-set data set. Customized exports can be

saved in the system and can be reused, modified or deleted. Customized data sets work in a similar manner as

other data sets except that they are not available in the .XML format. The following pre-set data sets can be

customized:

• 1034 MISMO 3.0

• Aggregator Evaluation Issues MISMO 3.0

• Transferred Loans MISMO 3.0

From the Originator Pipeline page, click the tab name for the type of loans you want to export; Candidate &

Rejected, Submitted or Transferred. The example below depicts, the Candidate & Rejected tab.



3. Select the loans to export.

4. Click Export. The Export Data page displays and defaults to the Loan Delivery Data MISMO 3.0 data set.

5. Select one of the data sets from the Data Set drop down menu. Select the data set that contains the fields

you need. This will be the basis for customizing your new data set.

Note: You must select from the data set menu to activate the Customize, Edit or Preview Data Set link.

6. Select a File Format from the drop down menu.






7. Select the Customize, Edit, or Preview Data Set link. The Export: Customize Data Set page displays.

8. Select the field(s) in the Current Fields box that you want to add to your new data set. To add more than

one field at a time, press Ctrl on your keyboard while selecting data fields.

9. Click the button.

10. Repeat this process to continue adding data fields.

11. Remove fields by clicking the field name in the New or modified data set box and click the button.

12. Add fields from other data sets by selecting a different data set from the Current data set drop-down

menu.

13. Continue adding fields as outlined in steps 7, 8, and 9.

14. Enter your new data set name in the Data Set Name field.

15. Click Save As New. You can now begin working with the new data set.

Step 9

Step 15






This document is not a replacement or substitute for the information found in Freddie Mac Single-Family

Seller/Servicer Guide or terms of your Master Agreement or other Pricing Identifier Terms. © 2020 Freddie Mac




Documents

Correspondent XChangeSM Functionality Manual · March 2020 Freddie Mac Learning Correspondent XChangeSM Functionality Manual This reference is designed to help you with instructions