Freddie Mac has announced a new tech advancement to streamline and strengthen its Single-Family quality control (QC) process.
The GSE’s new Quality Control Advisor Plus will further enhance loan quality, drive efficiency, and lower costs through technology that automates the quality control review and remedy process on delivered loans. A phased onboarding of Quality Control Advisor Plus is underway, and will be available to all lenders by year-end.
“Quality Control Advisor Plus will cut months off the current QC process for most lenders,” said Sonu Mittal, executive vice president and head of single-family acquisitions at Freddie Mac. “This new platform doubles down on our transparent and proactive approach to modernizing our QC processes. It provides considerable efficiencies for lenders so they can quickly identify and remediate issues as early as possible to minimize recurring defects and improve loan quality.”
The new platform is an integrated solution that unifies previously separate QC systems, and will be available to all lenders by year-end. This includes the more than 500 lenders that are already taking part in Freddie Mac’s performing loan repurchase alternative pilot. To date, participating lenders have saved millions of dollars in performing loan repurchases collectively. Additionally, the pilot is incentivizing better loan quality, as participating sellers had a 26% lower non-acceptable quality rate compared to those not in the pilot.
By streamlining the QC process, lenders can address issues such as missing documents with immediate, real-time alerts that offer a view into every step of the loan review process. This can reduce wait times by months, provide feedback on loan quality closer to origination, limit back-and-forth communication and ultimately identify, resolve and remediate loan defects. It also allows lenders to manage loan remedies and view samples of defects, access multiple reports, check loan review status in real-time, and upload loan files and missing documents.
Lenders will also have the ability to upload as many as 250 files at once, and receive immediate confirmation of receipt, eliminating guesswork and delays.
Mittal added, “We’re leveraging innovation at every stage of the loan cycle to deliver tangible benefits that help lenders drive efficiency, reduce costs, and further improve loan quality. Lender repurchase requests are down 56% from their peak in 2023, and industry feedback around the recent actions we’ve taken to improve loan quality has been overwhelmingly positive.”
