Freddie Announces New Loan Purchase Tool For Pre-Purchase Error Check

by devteam May 1st, 2013 | Share

Freddie Mac will be phasing in a new tool over thernnext few months which is designed to help lenders identify credit, data, andrnpurchase eligibility issues in their loans before they are delivered to FreddiernMac.  The Loan Quality Advisor marks thernlaunch of the company’s new Greater Purchase Certainty Initiative which seeksrnto help lenders improve loan quality while making it more efficient andrntransparent to do business with Freddie Mac. rn</p

The Advisor is an online tool that allows lenders torncompare current loan file data with the data submitted to Loan Prospector inrnorder to identify potential data, credit, and policy compliance issues thatrnmight affect the loans eligibility for purchase.  This will allow lenders to spot and fixrnpotential problems earlier in the loan process. rn</p

The Advisor has three individual services that willrnbe implemented individually in coming months. rnRegistration for the program will be phased in for all Freddie Macrncustomers by mid-summer.</p<ul class="unIndentedList"<liLoan Prospector Data Compare will trackrnthe consistency of loan delivery data with that submitted to Loan Prospector.</li<liPurchase Eligibility will enable lendersrnto flag potential delivery errors</li<liRisk Assessment which provides Freddie Mac's view ofrncredit risk and related quality issues on loans that aren't originated withrnLoan Prospector. </li</ul

Lenders can use the new tool at any point in thernloan manufacturing process, either before or after the loan closes.</p

Mike Dawson, Vice President ofrnCustomer Business Services said, “Loan Quality Advisor gives lenders fast,rntransparent feedback they can use to aid their loan manufacturing processes andrntake fuller advantage of Freddie Mac’s new representation and warrantiesrnframework.  By using Loan QualityrnAdvisor, our customers can enjoy greater purchase certainty when they dornbusiness with Freddie Mac.  Giving lenders greater certainty andrncomprehensive support is at the center of Freddie Mac’s customer mission.”

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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