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Loan Quality Advisor

An Automated Way to Identify Potential Pre- and Post-Closing Loan Eligibility Issues

Loan Quality Advisor® (LQA), is our risk and loan eligibility assessment tool that evaluates loan data to help lenders determine if a loan is eligible for sale 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 representation and warranty framework.

LQA Supports Your Business

Using LQA in your loan manufacturing process provides greater purchase certainty through detailed loan data feedback with the ability to:

  • Validate that loans are consistent with Freddie Mac requirements.
  • Be used anywhere in the loan origination process – from underwriting to loan delivery.
  • Determine whether third parties have originated a loan according to Freddie Mac eligibility requirements.
  • Gain an early view of loan delivery issues.
  • Reduce the time it takes to fund at loan delivery.
  • Accept and process both the Uniform Loan Delivery Dataset (ULDD) Phase 1 and 2 data points consistent with the selling system.
  • Identify loan production defect trends and proactively resolve them.
  • Leverage the merged credit report used during origination for use in Risk Assessment evaluation (available with ULDD Phase 2 data file and certain credit reporting companies). – NEW

LQA Services Provide Fast and Transparent Feedback

  • 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.
    • 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 Freddie Mac’s view of risk on non-Loan Prospector originated loans.
    • Leverages the merged credit report used during the origination process.
  • 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."
  • * This does not apply when merged credit is re-issue.

  • Purchase Eligibility 
    • Provides an early view of comprehensive purchase edits by running the same data quality and compliance rules run in the selling system at loan delivery.
    • 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 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 the 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 System-to-System Interface Available

The LQA system-to-system interface offers an automated way to submit loans to LQA directly from your loan origination or other desktop system. The interface provides access to the same functionality and results experienced in the LQA browser access method. Check out a preliminary list of vendors who plan to build the system-to-system access method for LQA.

LQA Registration

Contact your Freddie Mac representative or Customer Support (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 a.m.
3:30 a.m. to 9 p.m.
9 a.m. to 12 a.m.

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

Currently Available

  • LQA system-to-system specifications
  • LQA system-to-system interface and customer testing environment
  • Support ULDD Phase 1 and 2 data points
  • Merge credit re-issue

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