A new initiative has been launched by the Federal Home Loan Mortgage Corp. that is intended to provide approved sellers with more certainty about the deliverability of loans they originate.
The secondary lender announced Tuesday the launch of the Greater Purchase Certainty initiative, which was designed to help sellers improve loan quality.
The initiative is also intended to improve efficiency and transparency for seller-servicers that do business with the McLean, Va.-based company.
As part of the new initiative, Freddie Mac released Loan Quality Advisor. The new online loan tool provides lenders with an automated method of identifying credit, data and purchase eligibility issues before loan delivery.
The new tool helps lenders compare current loan file data with the data submitted to Loan Prospector. With this information in hand, lenders can identify potential data quality, credit and policy compliance issues that could impact purchase eligibility.
It also enables lenders to flag potential delivery errors and provides them with Freddie’s view of credit risk and related quality issues on loans that aren’t originated with Loan Prospector.
Loan Quality Advisor can be used at any point before or after the loan closes.
“By helping lenders spot and fix potential problems earlier in the loan manufacturing process, Loan Quality Advisor can make Freddie Mac’s purchase requirements more transparent and give lenders greater certainty in the loans they sell to Freddie Mac,” the notice stated.
Freddie Mac Vice President of Customer Business Services Mike Dawson noted in the announcement that the tool helps lender take fuller advantage of the company’s new representation and warranties framework.
Registration for Loan Quality Advisor will be phased in by mid-summer.
