Identify Purchase Eligibility Issues Using Our New Loan Quality Advisor Tool
April 30, 2013
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. LQA is designed to easily integrate into your current business processes and will be available this summer.
We are introducing LQA as part of our Greater Purchase Certainty initiative that focuses on helping you strengthen loan quality and makes doing business with Freddie Mac easier. LQA adds to our suite of tools and resources that supports you throughout your loan manufacturing process and helps ensure the loans you sell to Freddie Mac meet our purchase requirements. Our goal is to help you succeed under our new representation and warranty framework.
How 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’s services will provide you with fast and transparent feedback. The services include:
- 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
By helping lenders identify and fix potential problems earlier in the loan manufacturing process, LQA helps make Freddie Mac’s purchase requirements more transparent and give lenders greater purchase certainty in the loans they sell to Freddie Mac.
Visit the LQA Web page to learn more – and stay tuned for upcoming announcements on signing up to be an LQA user.