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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 AdvisorSM (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 
    • Provides a comparison view of current loan data submitted to LQA against loan data used in the last Loan Prospector submission.
    • Identifies data discrepancies and Loan Prospector eligibility issues prior to loan delivery so that you can take action to ensure the accuracy of the loan’s data and the corresponding Loan Prospector result.
    • 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 
    • Provides a summary of Freddie Mac’s view of credit risk for loans not originated using Loan Prospector.
    • Indicates the likelihood of an LP Accept or LP Caution if the loan had been submitted to Loan Prospector.
  • Important: To obtain Freddie Mac’s view of credit risk through the LQA Risk Assessment service, LQA will obtain new infile credit data. As a result, your organization may need to establish a relationship with the three national credit bureaus (Experian, TransUnion, and Equifax). Your request for credit data through LQA should appear on a borrower’s credit file as an account review inquiry, also known as a "soft pull."
  • Purchase Eligibility 
    • Runs data quality and purchase eligibility rules consistent with those run at loan delivery in selling system.
    • Identifies potential pre- and post-closing delivery errors related to data quality, charter compliance, and credit compliance.
    • Applies to both Loan Prospector and non-Loan Prospector originated loans.

Get Ready for LQA

To help you get ready to begin using LQA, make sure you are able to answer “YES” to the following LQA readiness checklist questions:

  • Are you able to create a ULDD file? (Note: not all data required at loan delivery is required in LQA.)
  • At what point(s) in your process will you evaluate loans through LQA? The tool can be used before and/or after a loan closes. 
  • Can you create a ULDD formatted file at the point(s) in process that you want to run LQA? If you use a loan origination system (LOS) or selling system vendor, check with them for potential restrictions. 

LQA Registration

Contact your Freddie Mac representative or 800 FREDDIE for 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.

Hours of Operation

Time ZoneDaysHours

Eastern

Mon-Fri
Sat
Sun

5:30 a.m. to 2 a.m.
5:30 a.m. to 11 p.m.
11 a.m. to 2 a.m.

Central

Mon-Fri
Sat
Sun

4:30 a.m. to 1 a.m.
4:30 a.m. to 10 p.m.
10 a.m. to 1 a.m.

Mountain

Mon-Fri
Sat
Sun

3:30 a.m. to 12 midnight
3:30 a.m. to 9 p.m.
9 a.m. to 12 midnight

Pacific

Mon-Fri
Sat
Sun

2:30 a.m. to 11 p.m.
2:30 a.m. to 8 p.m.
8 a.m. to 11 p.m.

Holidays – Loan Quality Advisor is available every day during the hours listed above, with the exception of the following days:

  • New Year's Day
  • Easter Sunday
  • Thanksgiving Day
  • Christmas Day

Resources

Loan Quality Advisor

  • Now Available

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