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June 01, 2015

A Message from Freddie Mac SVP Chris Boyle on Loan Prospector Fees

Homeownership

It's Free

Beginning today, Freddie Mac will no longer charge mortgage lenders to use its Loan Prospector (LP) automated underwriting system.

We are making this change to reduce the lending industry's cost of expanding mortgage credit to eligible borrowers.  We're making it now because the lending industry is fully focused on implementing new regulatory requirements, managing costs, and still providing the best possible service to their community's aspiring homeowners. 

Eliminating the LP fee not only eliminates a previously fixed-cost, it gives lenders more space to compete for new customers.  For example, eliminating LP's $20 fee could significantly reduce the cost of pre-qualifying a new customer, which reportedly ranges from around $80 to $100 or more. 

Another key point: Eliminating LP fees brings LP in line with Freddie Mac's other lender tools, such as Loan Quality Advisor, which have always been available free of charge.

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