Freddie Mac has integrated LoanBeam’s self-employment income assessment solution with its Loan Product Advisor automated underwriting system (AUS).
The integration will improve speed-to-close, file quality and data integrity throughout the lending process, the LoanBeam says in a release.
The integration means it will be easier and faster for mortgage lenders to underwrite self-employed borrowers.
“Simplifying the mortgage experience for self-employed borrowers gives lenders a competitive advantage,” says Rick Lang, vice president, loan advisor integration strategy for Freddie Mac’s single-family business. “Our integration with LoanBeam delivers the only fully automated and integrated solution available to the market, and can be leveraged by lenders to drive tangible cost savings. The integration of LoanBeam’s technology with Loan Product Advisor gives our clients an edge, the Freddie EdgeSM, with this expanding market.”
Roughly 44 million working Americans are either self-employed or working for the self-employed, according to the Pew Research Center.
LinkedIn predicts that by the year 2020, 43% of the U.S. workforce will be made up of freelance workers – that includes younger workers who want more flexibility and older workers looking to assert more control over their careers.
“With LoanBeam’s integration, lenders will have confidence about the loan’s data quality directly through Loan Product Advisor and certainty that the income derived from that data aligns with our requirements,” says Dave Lowman, executive vice president, single-family, Freddie Mac, in a separate release.
Lowman adds that this will speed up the underwriting process for lenders, “giving them a competitive edge with self-employed borrowers.”