Freddie Mac Adding LoanBeam IRS Data to Loan Product Advisor Toolkit


LoanBeam says Freddie Mac is further integrating the LoanBeam income solution, including IRS tax transcript data, with Loan Product Advisor (LPA).

Lenders have been using LoanBeam through the LPA AIM for Self-Employed tool to improve their process flow and achieve income confidence on sole proprietorships, S-corporations and partnerships.

“We have witnessed dramatic changes to the business landscape this past year, none more so than the way individuals are earning income outside of the traditional workplace,” says Kirk Donaldson, LoanBeam’s founder. “Lenders are looking for ways to improve income analysis and documentation confidence, and LoanBeam’s collaboration with Freddie Mac on income assessment will do exactly that.”

To meet the market demand for more acceptable income types and greater upfront certainty, LoanBeam has further refined its technology, making it possible for Freddie Mac to enrich and expand its AIM for Self-Employed offering to their mutual clients. 

“The ability to gain access to tax data directly from the IRS means this already successful and efficient solution gets even better,” remarks Kevin Kauffman, vice president of business partner integration at Freddie Mac.

Using certified IRS tax transcript data, representation and warranty relief will be expanded to include tax income data used in income calculations. This means lenders can be confident that the income calculations and income data are assessed by LPA, mitigating buy-back risks related to qualifying income.

Additionally, LPA will expand the scope of rep and warranty relief-eligible income types to include rental, regular corporation (Type C) and farm income, as well as incorporating income data included on tax extensions. The expansion of Freddie Mac’s credit box includes a greater portion of the borrower’s income that helps give lenders greater control to reduce risk.

Integration of the new IRS data sources will begin this fall.

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