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

Freddie Mac will be phasing in a new tool over the next few months which is designed to help lenders identify credit, data, and purchase eligibility issues in their loans before they are delivered to Freddie Mac.  The Loan Quality Advisor marks the launch of the company's new Greater Purchase Certainty Initiative which seeks to help lenders improve loan quality while making it more efficient and transparent to do business with Freddie Mac. 

The Advisor is an online tool that allows lenders to compare current loan file data with the data submitted to Loan Prospector in order to identify potential data, credit, and policy compliance issues that might affect the loans eligibility for purchase.  This will allow lenders to spot and fix potential problems earlier in the loan process. 

The Advisor has three individual services that will be implemented individually in coming months.  Registration for the program will be phased in for all Freddie Mac customers by mid-summer.

• Loan Prospector Data Compare will track the consistency of loan delivery data with that submitted to Loan Prospector.
• Purchase Eligibility will enable lenders to flag potential delivery errors
• Risk Assessment which provides Freddie Mac's view of credit risk and related quality issues on loans that aren't originated with Loan Prospector.

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

Mike Dawson, Vice President of Customer Business Services said, "Loan Quality Advisor gives lenders fast, transparent feedback they can use to aid their loan manufacturing processes and take fuller advantage of Freddie Mac's new representation and warranties framework.  By using Loan Quality Advisor, our customers can enjoy greater purchase certainty when they do business with Freddie Mac.  Giving lenders greater certainty and comprehensive support is at the center of Freddie Mac's customer mission."