TheMReport — News and strategies for the evolving mortgage marketplace.
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M R EP O RT | 5 MTECH deposit, collapsing asset and income verification into a single, paperless step provides cost-saving efficiencies for lenders, reduces the risk of fraud and manual errors, and helps borrowers get approved for—and into—their homes more quickly. "We have long contended that a consumer's data—in particu- lar, asset data sourced directly from financial institutions and extending over 12 months or more—holds the key to better understanding consumers' finan- cial DNA, streamlining lenders' underwriting processes, and driv- ing inclusion in homeownership," FormFree Founder and CEO Brent Chandler said. "This latest enhancement to Freddie Mac's AIM brings lenders money-saving process efficiencies by making income assessment instantaneous." "We're pleased to have FormFree's AccountChek product support this game-changing enhancement to our AIM offer- ing," said Christina Randolph, Director of Strategic Technology Partnerships at Freddie Mac. "Partnering with FormFree has helped unlock more consumer financial data that allows us to uphold our risk management standards while streamlining the mortgage process and increasing homeownership opportunities." A March Freddie Mac Single- Family Seller/Servicer Guide Bulletin will provide lenders addi- tional requirements and informa- tion about when the solution will be available. Once Freddie Mac releases AIM for income using direct deposits, it will be avail- able to lenders using LPA v5.06 or higher. Streamlining Asset Verification FREDDIE MAC TO USE FINICITY'S MVS TO POWER ASSET, INCOME, AND EMPLOYMENT VERIFICATION. F reddie Mac announced that the company will launch a new, automated capability that allows mortgage lenders to assess a prospective homebuyer's income paid through direct deposit to reduce the paper documentation burden on bor- rowers so they can close loans faster and simplify the lending process. This income assessment solu- tion is available to mortgage lend- ers nationwide through Freddie Mac's Loan Product Advisor (LPASM) asset and income modeler (AIM). AIM for income using direct deposits provides these cost-saving efficiencies, while continuing to meet Freddie Mac's strong credit underwriting standards. "Our direct deposit solution is an innovative, data-driven approach that takes minutes, not days to assess income so our clients can serve more bor- rowers more efficiently," said Matt Vincent, Freddie Mac Single-Family VP of Credit and Capacity. "Sourcing data directly from the mortgage applicant's bank account increases accuracy, removes subjectivity, reduces manual underwriting errors and delivers a better experience for borrowers and lenders." With more than 93% of U.S. workers being paid by direct de- posit, according to the American Payroll Association, AIM is now able to assess more income sources than ever. In addition to direct deposit data, with borrower permission, AIM can assess an applicant's income from employer data as well as tax return data for self-employed individuals. "We are thrilled to announce another first-of-its-kind solution to help bring greater loan origination efficiencies," said Kevin Kauffman, VP of Client and Partner Delivery, Freddie Mac Single-Family. "Working alongside our partners, we're offering tremendous value to our lender clients and their bor- rowers, while leading the industry on its digital journey to modern- ize the mortgage process." A recent Freddie Mac study highlights how lenders, through the adoption of Freddie Mac Loan Product Advisor automated solu- tions (including AIM), were able to significantly boost efficiency and on average shorten cycle times by as much as 15 days. In addition, these efficiencies translated into cost reductions, in- creased customer satisfaction, and improved capacity and conversion pull-through rates. This new AIM capability will be available to Freddie Mac- approved Sellers using Loan Product Advisor. Additional requirements and the effective date will be announced in an upcoming March Guide Bulletin. Initial service providers supporting Freddie Mac's AIM for income us- ing direct deposits include Finicity, a Mastercard Company, FormFree and PointServ. Freddie Mac's pri- vacy policy is available online. Anchor Loans Unveils New Corporate Identity and Website THE COMPANY SETS THE STAGE FOR EXPANSION AS LENDING FOR REAL ESTATE INVESTORS INCREASES. A nchor Loans, a provider of financing to residential real estate investors, unveiled a new corporate identity and website as part of its growth and expansion plans for 2022. The new branding and enhanced website come on the heels of a standout 2021 for Anchor Loans. In August, the company became the first fix-and-flip lender to reach $10 billion in total funding. In November, Anchor Loans was acquired by Pretium, a special- ized U.S. residential real estate and credit firm with approxi- mately $30 billion in assets. Anchor Loans finished 2021 with a record $1.8 billion in origina- tions. "As we look to continue our aggressive growth trajectory and expand our offerings, we want our branding to reflect our lead- ership in the market," said Andy Pollock, CEO of Anchor Loans. "Our new logo and website are designed to more accurately represent the characteristics our clients associate with Anchor Loans: modern, streamlined, ef- ficient, and customer-focused." Founded in 1998, Anchor Loans was the first institutional lending platform built to serve the diverse financing needs of professional residential real-estate investors. Over the last two de- cades, Anchor Loans has grown to become the nation's leading capital provider to experienced residential real estate investors through its fix-and-flip (bridge) and construction products. The company operates in 48 U.S. states, serving a professional customer base in which 95% of loans are made to established real estate entrepreneurs who have completed more than 40 projects. "We have long contended that a consumer's data—in particular, asset data sourced directly from financial institutions and extending over 12 months or more—holds the key to better understanding consumers' financial DNA." —Brent Chandler, Founder and CEO, FormFree