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Freddie Mac made automated payroll income verification available to lenders in hopes to reduce the documentation burden on borrowers, close loans faster and simplify the lending process, while maintaining its credit underwriting standards, according to a press release.
With the addition of Finicity, Freddie Mac’s clients have another option when choosing a payroll provider for verification of a mortgage applicant’s income through its Loan Product Advisor asset and income modeler.
"Broad adoption of these digital solutions through LPA is helping our clients grow their business and provide today’s borrowers with a vastly improved mortgage experience whether they’re refinancing their current mortgage or buying a new home," said Andy Higginbotham, Single-Family chief operating officer at Freddie Mac.
"Freddie Mac's commitment to simplifying the mortgage experience, while providing best-in-class technology to enable its clients’ decisioning, is significantly driving the adoption of a fully digital mortgage,” said Lisa Kimball, senior vice president of Product and Strategic Programs at Finicity. "Working with Freddie Mac on income verification that takes minutes and not days, delivers a better experience for borrowers and lenders alike, while promoting accuracy and improvement to the bottom line."
In addition to payroll data for salaried employees, lenders can also now receive confirmation through LPA that a self-employed borrower’s tax transcript data matches data from their IRS tax return processed through LoanBeam, according to the press release. Since 2019, Freddie Mac’s clients have been leveraging LoanBeam through LPA to enable the automation of income calculations for self-employed borrowers on sole proprietorships, s-corporations and partnerships.
Freddie Mac is also adding CoreLogic and LoanCraft as third-party service providers to its AIM for self-employed solution to give clients even more options.
Click here to learn more about Freddie Mac's latest enhancements to its digital mortgage platform.