Mortgage Capital Trading’s (MCT) secondary marketing platform is now integrated with Freddie Mac’s Income Limits application programming interface (API), created for the first-time home buyer area median income (AMI) limits.
Income Limits allows for the accurate pricing of Credit Fee in Price (Exhibit 19, or “Credit Fees”) waivers.
This is the latest in a series of successful API integrations between MCT and Freddie Mac, and helps promote both pricing transparency and housing affordability, MCT says in a release.
The API, a critical technological advancement for AMI-based pricing, allows the connecting party (either a lender or Secondary Markets Advisor (SMA)) to send income information and the property address through the API to return an answer on whether the borrower qualifies for the Credit Fees waiver.
The API provides a more accurate confirmation than can be derived with a ZIP code estimation, the company says.
The Credit Fees waiver is based on borrower income being less than 100% of AMI, and the API can also confirm whether the subject property is in a high-cost county, which allows for 120% of AMI.
Other Duty to Serve elements are supported in this API, including rural and high needs rural areas.
“Freddie Mac continues to be incredibly responsive from a service standpoint for lenders and vendors, as well as from a capital markets technology standpoint,” says Phil Rasori, chief operating officer for MCT. “Freddie Mac values relationships and rapid innovation, both of which have become more critical with affordability issues, due to high interest rates and home prices plaguing the mortgage industry despite the robust credit profiles of potential borrowers.”