From underwriting to servicing, Freddie Mac is engineering efficiency and cost savings into every part of the loan lifecycle.

In the first half of 2025, we provided over $172 billion in liquidity through more than 1,000 lenders, as we continue leading the GSE market in loan acquisitions. We attribute these results to the value we deliver through technology and a commitment to loan quality and prioritizing the seller experience.

Saving Time and Money

Put simply, technology is driving much of the efficiency and cost savings we bring to lenders. We pioneered automated underwriting 30 years ago, and today our automated underwriting system, Loan Product Advisor® (LPA®), carries on that tradition of innovation. As a result of those efforts, a recent survey shows that 80% of loan officers have a positive perception of LPA, which has translated into a tangible increase in usage.

We continue to evolve LPA with enhancements that reduce pain points, better manage risk, and save time and money for lenders and borrowers alike. For example, lenders who maximize LPA’s digital tools are originating loans that are on average $1,700 less costly (versus $1,500 two years ago), while also doubling their net margins and shortening production timelines by an average of five days. We estimate the shorter cycle time, combined with fewer re-works, increases pull-through rates and translates to an annual incremental revenue increase of $6.6 million for an average-sized lender.

In addition, other Freddie Mac offerings are helping lenders drive business. For example, the enhanced feedback messages of LPA Choice® are empowering loan officers to make quicker, more informed decisions with actionable guidance. In less than a year, LPA Choice has assisted lenders in qualifying nearly 100,000 additional borrowers for a mortgage. This goes beyond increased efficiency; it creates new business for lenders and more than 50,000 new first-time homeowners.

Most significantly, Freddie Mac has used machine learning to develop a new model that supports LPA. It introduces a strategic shift in loan acceptance criteria, prioritizing long-term risk while supporting affordability as well as safety and soundness. This new model began powering LPA recently.

Beyond the origination process, we have launched Freddie Mac Gateway, which combines LPA and Servicing Gateway into a single point of entry to the tools lenders and servicers need to manage loans throughout their lifecycle. For servicers who have made investments in our technology, a recent survey shows they have 24% lower servicing costs per loan.

Strengthening Loan Quality

Freddie Mac’s technology tools also are rooted in safety and soundness, with the goal of enhanced loan quality. One tool helping improve loan manufacturing quality is LPA’s asset and income modeler (AIM). Our recent analysis shows increased use of AIM correlates with lower overall defect rates, which reflects loans that carry significant issues.

In fact, mortgages originated by lenders who leverage our digital tools are on average four times less likely to have loan defects than those originated without them. This greatly lowers lenders’ exposure to costly loan repurchases and, for the hundreds of lenders taking part in our Performing Loan Repurchase Alternative Pilot, it incentivizes strong loan quality. Lenders in our pilot have collectively saved millions of dollars by avoiding performing loan repurchases and can enhance their profits or choose to reduce origination fees with these savings.

As of the second quarter of this year, repurchase demands are down 56% from their peak in 2023 and industry feedback on our pilot effort has been overwhelmingly positive.

We are also finding new ways to adapt our offerings to meet the needs of the market. For example, our new Freddie Mac Income Calculator allows lenders to more accurately assess the criteria of borrowers with a variety of income sources, improving loan quality. More than 1,000 sellers are already using the tool and have made over 15,000 submissions to help reduce loan defects and repurchase risk.

By year-end, we will release to all sellers Quality Control Advisor Plus, an end-to-end solution for managing the quality control and remedy process after Freddie Mac purchases a loan. By modernizing our quality control review technology, we will increase the speed of the review process, increase assurance that review decisions are made consistently and reliably through greater automation, and increase transparency of the loan status and overall performance trends.

We expect Quality Control Advisor Plus to cut months off the current loan review process for most lenders and provide feedback on loan quality closer to origination.

Our digital suite also enables lenders to quickly check and validate loan applications against Freddie Mac guidelines and catch possible mortgage fraud early in the origination process. We also track individuals or entities that have committed fraud in the past, and share that with lenders, which further aids the loan screening process.

Last year, Freddie Mac launched its Tip Referral Tool, a centralized, secure platform for industry participants and the public to report mortgage fraud, suspicious activity and adverse self-reporting related to Freddie Mac-owned loans. In just the first year, we received thousands of tips, helping us protect loan quality.

Prioritizing Seller Experience

At the center of all our efforts is the seller experience. We listen, learn and act on feedback from lenders, evolving our solutions to deliver the best execution.

Over the last couple of years, we introduced changes that have created a best-in-class seller experience, from onboarding to optimizing how sellers do business with us. We brought on additional expertise and updated operations to center on relationship building and a consultative, iterative model for lenders of all sizes. With these changes, Freddie Mac is onboarding lenders three times faster than two years ago and, by doing so, providing added liquidity to the market to the tune of $6 billion in new aggregate volume.

By powering efficiency in every part of the loan cycle, Freddie Mac is delivering on its mission to provide liquidity and stability to the housing market, while reducing costs and emphasizing safety and soundness. We are proud of our progress thus far and look forward to continuing to find new, innovative ways to advance the industry while making housing more affordable and accessible for families across America.

©2025 by Freddie Mac.