“Our latest innovation levels the playing field and helps make homes more accessible to borrowers whose lenders might not have qualified them with traditional underwriting methods,” Merlino said. “This should especially help first-time home buyers and underserved communities.”
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With the borrower’s permission, lenders and brokers nationwide may submit financial account data for LPA to identify 12 or more months of cash activity to include in the lender’s risk assessment. ‘tool. Data can be obtained from checking, savings, and investment accounts, including those used for direct deposit of income and monthly bill payments, such as rent, utilities, and auto loans. LPA will notify lenders when submitting additional account data that may positively impact the borrower’s credit risk assessment.
Lenders and brokers can collect financial account data from designated third-party service providers using the same automated process they currently use to verify assets, income (via direct deposit), employment and payments from rent on time via a single report via the LPA asset. and Revenue Modeler (AIM). These service providers include Blend, Finity, FormFree, and PointServ.
“Working alongside our industry partners, we’ve made significant progress toward modernizing the mortgage origination process,” said Kevin Kauffman, vice president of customer engagement at Freddie Mac Single- Family. “In today’s market, our latest cutting-edge innovation provides lenders with efficiencies that can drive cost savings and improvements to the borrower experience while meeting Freddie Mac’s stringent credit underwriting standards.”