Freddie Mac will be phasing in a new tool over the
next few months which is designed to help lenders identify credit, data, and
purchase eligibility issues in their loans before they are delivered to Freddie
Mac. The Loan Quality Advisor marks the
launch of the company's new Greater Purchase Certainty Initiative which seeks
to help lenders improve loan quality while making it more efficient and
transparent to do business with Freddie Mac.
The Advisor is an online tool that allows lenders to
compare current loan file data with the data submitted to Loan Prospector in
order to identify potential data, credit, and policy compliance issues that
might affect the loans eligibility for purchase. This will allow lenders to spot and fix
potential problems earlier in the loan process.
The Advisor has three individual services that will
be implemented individually in coming months.
Registration for the program will be phased in for all Freddie Mac
customers by mid-summer.
-
Loan Prospector Data Compare will track
the consistency of loan delivery data with that submitted to Loan Prospector.
-
Purchase Eligibility will enable lenders
to flag potential delivery errors
-
Risk Assessment which provides Freddie Mac's view of
credit risk and related quality issues on loans that aren't originated with
Loan Prospector.
Lenders can use the new tool at any point in the
loan manufacturing process, either before or after the loan closes.
Mike Dawson, Vice President of
Customer Business Services said, "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. By using Loan Quality
Advisor, our customers can enjoy greater purchase certainty when they do
business with Freddie Mac. Giving lenders greater certainty and
comprehensive support is at the center of Freddie Mac's customer mission."