Freddie Mac announces Automat – GuruFocus.com
MCLEAN, Va., May 26, 2022 (GLOBE NEWSWIRE) — Freddie Mac (FMCC) unveiled new automated underwriting capabilities that allow lenders to verify assets, income and employment using bank account data approved by the borrower. On June 1, 2022, this functionality will be available to mortgage lenders nationwide through the Asset and Income Modeler (AIM) in Freddie Mac Loan Product Advisor® (PLASM), the company’s automated underwriting system.
“This industry-first innovation supports our mission to make sustainable homeownership more affordable and accessible,” said Andy Higginbotham, Chief Operating Officer of Freddie Mac Single-Family. “Our suite of AIM services will be instrumental in improving the accuracy and efficiency of the underwriting process, which will be essential as the mortgage landscape continues to evolve towards greater activity in the purchase market. .”
AIM’s latest enhancement, the 10-day pre-closing verification (PCV) automation of employment, will be available on June 1, 2022. The capability provides the borrower’s current employment status to the using the borrower’s approved bank account (direct deposit) or payroll data obtained from designated third-party service providers. This offers lenders a more effective option than obtaining an oral or written verification of employment before closing.
A recent Freddie Mac study found that by adopting automated offerings (like AIM), lenders are able to dramatically increase efficiency and shorten cycle times by up to 15 days. In addition, these efficiencies translate into a 30% reduction in loan origination costs, improved client satisfaction, and an increase in the number of applications processed and closed.
“Freddie Mac’s focus on risk management is critical to achieving our mission through all economic cycles,” said Terri Merlino, Freddie Mac’s Single Family Credit Manager. “These enhancements to our underwriting system increase accuracy and reduce fraud through searching bank account data. They also reduce manual underwriting errors and delays created by back-and-forth paperwork. »
Freddie Mac recently unveiled the industry’s first automated Direct Deposit Earnings Assessment, now available nationwide. Today, AIM can assess more sources of income than ever before, including for people with fixed incomes or alternative sources of income, such as retirement, Social Security, veterans benefits, alimony and child support. Additionally, AIM can assess an applicant’s income from self-employed tax return data, a capability the company launched in 2019. AIM offers these cost savings to lenders, while continuing to meet the Freddie Mac’s strict credit underwriting standards.
To learn more, visit the AIM webpage.
About Freddie Mac
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our founding by Congress in 1970, we have made housing more accessible and affordable for buyers and renters in communities nationwide. We are building a better housing finance system for buyers, renters, lenders, investors and ratepayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog, FreddieMac.com/blog.
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