Freddie Mac has introduced a new online tool, the Loan Quality Advisor, designed to help lenders identify credit, data and purchase eligibility issues before they deliver loans to the government-sponsored enterprise.
By helping lenders spot and fix potential problems earlier in the loan process, Loan Quality Advisor can make Freddie Mac's purchase requirements more transparent and give lenders greater certainty in the loans they sell. Loan Quality Advisor also gives lenders Freddie Mac's view of credit risk on mortgages that were not originated on Loan Prospector, Freddie Mac's automated underwriting service.
‘Loan Quality Advisor gives lenders fast, transparent feedback they can use to aid their loan manufacturing processes and take fuller advantage of Freddie Mac's new representation and warranties framework,’ says Freddie Mac's Mike Dawson.
The tool consists of three individual services that will be phased in over the coming months. The new services include Loan Prospector Data Compare (tracks the consistency of loan delivery data with the data submitted to Loan Prospector); Purchase Eligibility (enables lenders to flag potential delivery errors) and Risk Assessment (provides Freddie Mac's view of credit risk and related quality issues on loans that are not originated with Loan Prospector).
Freddie Mac notes that lenders will be able to use Loan Quality Advisor at any point in the loan manufacturing process – before or after the loan closes.
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