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Loan Prospector Changes to Further Streamline Originations

Loan Prospector Changes to Further Streamline Originations

Freddie to implement changes this weekend

December 6, 2002

By staff

Freddie Mac announced that its automated underwriting system will give brokers an added boost beginning this weekend, and that Freddie plans on helping brokers electronically close online in the next two years.

Building on the success of its Loan Prospector underwriting system, the government-sponsored mortgage giant will launch a new Web site on Sunday that further streamlines the origination process.

The Web site makes available to brokers new tools and better data transfer capabilities, said Loan Prospector vice president Tricia McClung.

“The Web site provides one access point to all of the Internet-based origination tools available through Loan Prospector,” she said. “In the next two years, we’ll help lenders and brokers to evaluate, price, process, electronically close, and fund their loans online.”

The Web site allows mortgage lenders to order appraisals, flood determinations, title products, and property surveys from vendors. Lenders and brokers can electronically transmit information among service providers, as well as place orders, check order status in real time, an receive reports.

“When borrowers call their lender to check on the status of an appraisal or title insurance, the lender can immediately check the status online,” McClung said.

During the loan application process, the new Web site features the ability to transfer the necessary data from one business process to the next. This minimizes re-entry of loan information and re-keying errors, the announcement said. The loan application data also can be exported to and from Loan Prospector and lenders’ loan origination software.

The site also provides expanded credit information. Originators can use a FICO-based credit-counseling tool from Equifax to help borrowers understand credit scores in plain language, the announcement said.

Starting on Sunday, all Loan Prospector online customers will be automatically directed to the new Web site.

This is Loan Prospector’s third upgrade since it was launched in 1995 to evaluate conventional, conforming mortgages, the announcement said. In the late 1990s, FHA, VA, subprime, and jumbo loan evaluation was added. In 1999, Loan Prospector became available over the Internet.

Freddie was established in 1970 by Congress to support homeownership and rental housing.

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