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Use Loan Quality Advisor for Greater Purchase Certainty

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We introduced Loan Quality AdvisorSM (LQA) last year to give you an automated way to identify credit, data, and purchase eligibility issues before you sell a loan to Freddie Mac. We're enhancing the tool by:

  • Adding Purchase Eligibility, a service that runs the same data quality and purchase eligibility rules used in the Freddie Mac selling system when you deliver a loan.
  • Offering an LQA system-to-system interface option to give you an automated way to submit loans to LQA directly from your system.
  • Enabling re-use of merged credit with LQA's Risk Assessment service.

Learn more about how these enhancements can provide you with even more confidence that the loans you sell to Freddie Mac meet our eligibility requirements.

LQA's Purchase Eligibility Helps You Resolve Errors Earlier

Launched on March 30, 2014 for all loan submissions, Purchase Eligibility will help you identify and resolve errors related to data quality, charter compliance, and credit compliance prior to loan delivery. This service evaluates loans using the same rules as Freddie Mac's selling system and provides consistent feedback and error messages. By making the thousands of selling system rules available in LQA, this earlier view:

  • Enables you to resolve potential purchase eligibility issues prior to delivery.
  • Reduces the time it takes to obtain Freddie Mac funding.
  • Provides an early view of compliance with Freddie Mac's appraisal delivery requirements.

LQA uses the same Uniform Loan Delivery Data (ULDD) file format you use when you deliver loans in the selling system. If you want to run LQA earlier in your process, your ULDD file may not be complete; however, the Purchase Eligibility service still will evaluate your loans using the data you submitted. Please note the results Purchase Eligibility generates are based on the completeness of the data in the file you provide at the time of your LQA submission. You may resubmit an updated file to LQA at any point in your origination process.

In LQA, the Purchase Eligibility messages are consistent with the category names and messages you receive in the selling system. Purchase Eligibility results include unique category codes to help drive workflow as well as red, yellow, and green color indicators that can be used to quickly identify critical errors. Results can be sorted easily, viewed in the Web interface, and exported to your desktop.

New LQA System-to-System Interface

This summer, we'll introduce an LQA system interface to give you an automated way to submit
loans to LQA directly from your system. The LQA system-to-system specifications were distributed to Freddie Mac-verified loan origination system (LOS) vendors earlier this year, and the customer test environment is available for use.

Coming Soon – Merged Credit in the Risk Assessment Service

In the third quarter 2014, LQA will be enhanced to enable LQA's Risk Assessment service to re-use merged credit. LQA will re-use the same credit data used in the origination process for evaluating loans. Stay tuned for more details.

Here's the Best News

Customers who use LQA quickly also see the benefits of LQA's additional services:

  • Loan Prospector Data Compare. Ensures the Loan Prospector® result is still valid by providing a comparison view of current loan data submitted to LQA against loan data used in the last Loan Prospector submission.
  • Risk Assessment. Provides Freddie Mac's view of risk on non-Loan Prospector originated loans.

We've made it easy for you to begin using LQA. For example, LQA:

  • Requires no investment and provides a customer experience consistent with other Freddie Mac tools.
  • Allows you to use your existing Loan Prospector and selling system user IDs and passwords.
  • Accepts a ULDD file format.
  • Leverages the same single loan or multi-loan batch file upload approach for submissions as you use in the selling system.
  • Allows you to view both batch-level and loan-level results.
  • Provides the ability to sort batch results so you can easily identify critical issues using red, yellow, and green color indicators.
  • Allows you to export results to your desktop.
  • Enables you to use a variety of training options – from Web tutorials to in-class training.

Freddie Mac remains committed to your long-term success and is continually evolving the suite of tools we offer to support your unique business needs. By helping you identify and fix potential problems earlier in the loan manufacturing process, LQA helps make Freddie Mac's purchase requirements more transparent and gives you greater certainty and comprehensive support when you do business with Freddie Mac.

For More Information

  • Contact 1-800-FREDDIE or your Account Manager for details on the sign-up process. Once signed up, you will be able to easily integrate LQA into your business processes.
  • Sign up for our LQA Webinars:
    • Loan Quality Advisor: An Introduction and Overview
    • Integrating Loan Quality Advisor (LQA) into Your Business Processes Webinar
    • Loan Quality Advisor: Purchase Eligibility Service – New
  • Visit the LQA Web page.

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