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Loan Quality Advisor

An automated way to identify potential pre- and post-closing loan eligibility issues

As part of our Greater Purchase Certainty initiative, Loan Quality Advisor^SM (LQA) is our newest Web-based risk and eligibility assessment tool that gives you an automated way to identify credit, data, and purchase eligibility issues before you deliver loans to Freddie Mac.

Incorporating LQA into your business processes will help strengthen loan quality and meet our purchase requirements – key components to achieving success under the new representation and warranty framework.

LQA Supports Your Business

Using LQA in your loan manufacturing process provides greater purchase certainty through detailed loan data feedback that lets you:

• Identify and resolve potential loan manufacturing defects and trends earlier in the loan manufacturing process.
• Validate that manufactured loans are consistent with Freddie Mac policy.
• Make changes to comply with Freddie Mac purchase requirements before the loan closes.
• Determine whether correspondent lenders have manufactured a loan according to Freddie Mac purchase requirements.
• Gain an early view of loan delivery issues.
• Reduce the time it takes to fund at loan delivery.

LQA Services Provide Fast and Transparent Feedback

• Loan Prospector Data Compare (available early summer 2013)
  • Provides a comparison view of current loan data submitted to LQA against loan data used in the last Loan Prospector submission.
  • Helps maintain the loan’s LP Accept risk class so that the representation and warranty relief provided by Loan Prospector can remain valid at loan purchase.
• Risk Assessment (available early summer 2013)
  • Provides a summary of Freddie Mac’s view of a loan’s credit risk and associated loan quality for loans not originated using Loan Prospector.
  • Indicates the likelihood of an LP Accept or LP Caution.
• Purchase Eligibility (available fourth quarter 2013)
  • Runs data quality and purchase eligibility rules consistent with those run at loan delivery.
  • Identifies potential pre- and post-closing delivery errors related to data quality, charter compliance, and credit compliance.

Get Ready for LQA

To help you prepare to start using LQA, make sure you are able to answer “yes” to the following LQA readiness checklist questions:

• Can you create a ULDD file?
• Have you determined how you will use LQA in your loan manufacturing process?
• Have you determined what your business processes are for using LQA?
• Have you identified who will use LQA in your organization?
• Are there operational or security impacts for accessing the loan data in your processes?

LQA Registration

In early summer 2013, we will be providing additional details on the sign-up process. Once signed up, you will be able to easily integrate LQA into your business processes.

Check back periodically for updates.

Resources

• LQA Factsheet
• LQA Getting Started FAQ's