October 2016 - Changing of the Guard

TheMReport — News and strategies for the evolving mortgage marketplace.

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36 | TH E M R EP O RT BEST IN ORIGINATION BEST in ORIGINATION SERVICES Special Advertising Section COMPANY DESCRIPTION Freddie Mac was chartered by Congress in 1970 with a public mission to stabilize the nation's residential mortgage markets and expand opportunities for homeownership and affordable rental housing. Their statutory mission is to provide liquidity, stability, and affordability to the U.S. housing market. New Initiatives Since the 2008 housing crisis, the cost of originating a loan has more than doubled. Recent data reports that origination costs rose from an average of $3,685 per loan in 2009 to $7,747 by the end of 2015. In the first quarter of this year alone, costs rose $667 per loan. Reasons for the cost increases include new regulatory compliance requirements and the addition of numerous manual checklist processes to avoid future repurchase risk. Seeking a solution for lenders, Freddie Mac developed Loan Advisor Suite, its new end-to- end technology solution designed with lenders for lenders to help to lower cost, improve efficiency, reduce risk, and provide greater certainty during the loan production process. Freddie Mac Loan Advisor Suite SM empowers lenders to automate data management and receive alerts when a loan has a higher risk, allowing them to act quickly to resolve issues. It will help lenders deliver high quality loans and acquire earlier insight into their eligibility for representation and warranty relief. "We took our time developing this technology and partnered with our lenders," says Chris Boyle, SVP at Freddie Mac. "Their objectives were our objectives: greater certainty, usability, reliability, and efficiency." COMPETITIVE ADVANTAGE Freddie Mac Loan Advisor Suite is a one-stop, online shop for lenders to gain better insight into the loans they are producing and selling to Freddie Mac It is designed to be easy to use and intuitive. Screens are clean and uncluttered. Tool icons are intuitive and logically organized. Lenders can access a single sign-on portal and/or their loan origination system. Technology Solutions Freddie Mac Loan Advisor Suite adds several game- changing solutions to Freddie Mac's current roster of lender tools and applications: Loan Collateral Advisor SM , Loan Product Advisor SM , Loan Closing Advisor SM , and Business Intelligence. In addition, Freddie Mac is greatly enhancing Loan Quality Advisor ® , Loan Coverage Advisor ® , and its Selling System SM . Loan Product Advisor is the next generation of Loan Prospector and the cornerstone of Loan Advisor Suite. It allows underwriters to easily access Freddie Mac's credit requirements and credit risk to assess the loan's overall underwriting risk. Lenders will see major improvements in the tool's feedback certificate. "The feedback certificate has been completely redesigned and feedback messages are easy to understand, actionable, and loan specific," explains Boyle. Loan Collateral Advisor is an appraisal assessment tool that promotes better appraisal quality by analyzing appraisal reports and providing real- time risk assessment feedback on appraisals. Any appraisals submitted to the Uniform Collateral Data Portal (UCDP) will seamlessly and automatically integrate with Loan Collateral Advisor. Loan Quality Advisor is a risk and eligibility assessment tool used to evaluate loan data to help lenders determine if a loan is eligible for sale to Freddie Mac. Loan Closing Advisor helps lenders validate their closing data against the Uniform Closing Dataset (UCD) and provides feedback messages on data quality to help lenders identify and resolve closing data defects quickly. Lenders will be required to deliver the UCD in the third quarter of 2017. Loan Coverage Advisor calculates and tracks the selling representation and warranty relief date for each loan sold to Freddie Mac. The tool allows users to search for critical loan-level information and quickly generate reports or export data. Selling System, Freddie Mac's online system for purchasing mortgages, brings together pricing, contracting, loan delivery and allocation, note certification and settlements into a single, easy-to- use system. "Perhaps the most innovative new capability is Business Intelligence," adds Boyle. "All the data from the different tools a lender uses is pulled into a simple snapshot designed to make pipeline reporting and trend analysis easier." Freddie Mac Loan Advisor Suite brings its different pieces together in a revolutionary way. It's a simpler, better way to do business. KEY PERSONNEL Don Layton CEO David Lowman EVP, Single-Family Business Andrew Higginbotham SVP, Single-Family Strategic Delivery Chris Boyle SVP, Single-Family Sales & Relationship Management CONTACT INFORMATION 8200 Jones Branch Drive McLean, VA 22102 Web: LoanAdvisorSuite Freddie Mac

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