Loan Quality Advisor FAQ
Loan Quality Advisor®
Find answers and advice for Freddie Mac's risk and eligibility assessment tool.
General Loan Quality Advisor Questions
Loan Quality Advisor is a risk and eligibility assessment tool that evaluates loan data to help lenders determine if a loan is eligible for sale to Freddie Mac. Loan Quality Advisor provides you with information about Freddie Mac’s risk assessment and eligibility requirements at the point(s) in the process where it is most useful to you.
- Loan Product Advisor Data Compare – Helps you determine whether the Loan Product Advisor® result is still valid by providing a comparison view of current loan data submitted to Loan Quality Advisor against loan data used in the last Loan Product Advisor submission.
- Risk Assessment – Provides Freddie Mac's view of risk on non-Loan Product Advisor-originated loans.
- Purchase Eligibility – Provides an early view of comprehensive purchase edits by running the same purchase eligibility rules run in the Selling System® at loan delivery.
Loan Quality Advisor helps improve efficiency in your business’ processes by helping you identify and resolve credit, data and purchase eligibility issues before you deliver loans to Freddie Mac.
- Helps you determine whether third parties have originated a loan according to Freddie Mac eligibility requirements.
- Gives you an early view of loan delivery issues.
- Helps reduce the time it takes to obtain post-purchase funding at loan delivery.
- Helps you identify loan production defect trends and proactively resolve them.
- Can be used anywhere in the loan origination process – from underwriting to loan delivery.
While Loan Quality Advisor can be leveraged multiple places within the loan creation process, here are some of the ways we have seen it implemented by lenders to date:
- Loan Product Advisor Data Compare service just prior to closing the loan to determine that no changes have occurred that would impact the Loan Product Advisor Accept risk class and corresponding relief of representation and warranties.
- Risk Assessment is for loans originated outside of Loan Product Advisor. Use this service prior to closing the loan to get a summary of Freddie Mac’s credit risk assessment and/or prior to making your best execution decision.
- Purchase Eligibility runs data quality and purchase eligibility rules exactly like those run at loan delivery, enabling you to resolve potential purchase eligibility issues prior to delivery. This is valuable right before loan closing, when the full Uniform Loan Delivery Data file is likely close to complete, or as part of a post-closing quality control process in anticipation of loan delivery.
- If purchasing from third-party originators, all services can also be beneficial in understanding the eligibility of the loan prior to making a final commitment on that loan
Together these services can help increase your confidence in the eligibility of loans you sell to Freddie Mac.
No. You are not required to use Loan Quality Advisor on loan submissions. However, we encourage you to use it to assist you in identifying loan eligibility issues before loans are sold to Freddie Mac. Using Loan Quality Advisor during your loan manufacturing process helps provide you with greater certainty that the loans you sell to Freddie Mac meet our requirements.
No. Loan Quality Advisor is free.
Visit the Loan Advisor Suite home page and scroll down to the Business Intelligence section. Click to learn more about its functionality.
Business Intelligence for Loan Quality Advisor is available now.
There is no cost to using Business Intelligence.
If you currently use Loan Quality Advisor, you don't need to do anything. This capability is now automatically available to you within the Loan Advisor Suite portal. Once in the portal, click on the "open" button alongside Business Intelligence.
- If your company uses Loan Quality Advisor, but you are not a day-to-day user of the tool, use our Business Intelligence capability to monitor your shop's Loan Quality Advisor results. Register to begin using this capability by completing the sign-up form. Be sure to select the Business Intelligence ONLY option on the form.
- If you are not using Loan Quality Advisor, register and begin using the tool by navigating to Loan Quality Advisor. Under the Resources section, select "Set-up Form" to begin the process, and select the user role(s) that applies best to your needs.
Using Business Intelligence requires little, if any, training since the dashboards are intuitive and self-explanatory. However, there is help available the Business Intelligence Online Help page within the Loan Advisor Suite portal.