Auto-Derived Special Feature Codes

Loan Delivery and EarlyCheckTM will automatically derive and display certain applicable Special Feature Codes (SFCs) associated with a loan. Applicable SFCs are determined by leveraging the underlying "root data" in the following:

• ULDD XML import file (Loan Delivery and EarlyCheck)
• Form 1003 and MISMO AUS origination import files (EarlyCheck only)
• Manually entered data (Loan Delivery only)

Lenders have several options available for providing SFCs. To assist in evaluating these options, an overview of the options, key considerations, and an example are provided below.

Options for Providing SFCs at Loan Delivery

1. Populate all applicable SFCs in the import file,
2. Add all applicable SFCs via manual entry in Loan Delivery, or
3. Take advantage of the auto-derivation feature that uses the “root data” in the ULDD XML file to determine some applicable SFCs. Sellers are still required to populate all other applicable (non-derived) SFCs. See considerations below.

NOTE: Sellers who manually enter loan data in Loan Delivery can choose to stop manually entering auto-derived SFCs.

Considerations for Option 3

1. Verify the appropriate ULDD data fields are populated correctly within the ULDD XML import file prior to removing any of the corresponding SFCs from your system.
2. If the required ULDD data cannot be populated for any reason within the ULDD file, then the auto-derived SFC(s) should continue to be provided by the seller in Loan Delivery. This will ensure proper assessment of the loan’s eligibility for sale to Fannie Mae.
3. All Loan Delivery reports, ULDD file exports, and Fatal/Warning error messages will continue to contain references to the auto-derived SFCs.

Auto-Derived SFC Listing

The table below lists the specific SFCs that sellers are not required to populate in Loan Delivery or EarlyCheck. These auto-derived SFCs will be automatically populated based on the root data provided.

Auto-Derived SFCs
SFC	SFC Name	ULDD Sort ID	ULDD MISMO Data Point Name	ULDD Enumerated Value
003	Cash-Out Refinance	315	Loan Purpose Type	Refinance
		294	Refinance Cash Out Determination Type	Cash Out
007	Limited Cash Out / No Cash Out Refinance	315	Loan Purpose Type	Refinance
		294	Refinance Cash Out Determination Type	Limited Cash Out or No Cash Out
019	Lender-Purchased Mortgage Insurance	426	MI Premium Source Type	Lender
118	Community Seconds®	513.1	Loan Affordable Indicator (second lien)	TRUE
127	Desktop Underwriter® (DU®) Loan	326	Automated Underwriting System Type	Desktop Underwriter
170	Loan Has Flood Insurance - Property in a Special Flood Hazard Area	65	Property Flood Insurance Indicator	TRUE
		24	Special Flood Hazard Area Indicator	TRUE
175	Loan Has Flood Insurance - Property Not in a Special Flood Hazard Area	65	Property Flood Insurance Indicator	TRUE
		24	Special Flood Hazard Area Indicator	FALSE
180	Loan Does Not Have Flood Insurance - Property Not in a Special Flood Hazard Area	65	Property Flood Insurance Indicator	FALSE
		24	Special Flood Hazard Area Indicator	FALSE
211	Correspondent Third-Party Origination	635	Loan Originator Type	Correspondent
212	Broker Third-Party Origination	635	Loan Originator Type	Broker
235	Multi-width Manufactured Housing	51	Construction Method Type	Manufactured
281	Financed Mortgage Insurance	423	MI Premium Financed Indicator	TRUE
304	Texas Section 50(a)(6)	451	Refinance Program Identifier	Texas Equity
508	eMortgage	233	eNote Indicator	TRUE
588	Detached Condominium Unit	50	Attachment Type	Detached
		47	Project Legal Structure Type	Condominium
784	ENERGY STAR Green Building Certification for Green Bonds	N/A	N/A - SFC is auto-derived based on the verification of an eligible Green Building certification	N/A
791	Single-width Manufactured Housing	51	Construction Method Type	Manufactured
		33	Manufactured Home Width Type	Single Wide
807	High LTV Refi Value Acceptance (Appraisal Waiver)	376	Investor Collateral Program Identifier	High LTV Refinance
839	High LTV Refinance - Standard Qualification	451	Refinance Program Identifier	High LTV Refinance
		368	Investor Feature Identifier	Not 840
874	Duty to Serve LLPA Waiver For full list of requirements see Lender Letter (LL-2022-05)	291	Total Monthly Income Amount	N/A
		315	Loan Purpose Type	Purchase or Refinance
		294	Refinance Cash Out Determination Type (conditionally required)	No Cash Out or Limited Cash Out (Cash Out not eligible)
		69	Property Usage Type	Primary Residence

 

Auto-Derived SFC XML Example

Below is an XML file example showing two Auto-derivable SFCs. The two SFCs in the red boxes (SFCs 175 and 007) will be auto-derived based on other root data in this file; therefore, it is not necessary to include these in your ULDD XML data file.

1. SFC # 175 - Loan Has Flood Insurance - Property Not in a Special Flood Hazard Area
2. SFC # 007 - Limited Cash Out / No Cash Out Refinance

 

Auto-Derived SFC Loan Delivery Manual Input Example

The SFC auto-derive feature also works directly in Loan Delivery for manual entry. Below is an example of a limited cash-out refinance loan. For demonstration purposes only, it will be changed to a cash-out refinance loan.

In the Refinance section under Loan Terms, note that the Limited Cash Out selection generates SFC 007.

If the Refi Cash-Out Determination field above is changed to Cash-Out, note the generation of SFC 003 when the “Save and Run Loan Edits” button is selected.