Freddie Mac partnering with LoanBeam to automate income verification

LoanBeam’s software digitizes paper income documents

Freddie Mac is beefing up its Loan Advisor Suite again.

Last year, Freddie Mac announced a series of enhancements to its Loan Advisor Suite, which is a set of integrated software applications designed to give lenders a way to originate and deliver high quality mortgages to Freddie Mac and acquire insight into representation and warranty relief earlier in the loan production process.

According to Freddie Mac, the programs are designed to cut mortgage origination costs for lenders.

Now, Freddie Mac is partnering with LoanBeam to improve the income verification capabilities of the Loan Advisor Suite.

LoanBeam’s software provides automated income extraction and calculation, which basically means that LoanBeam’s software is able to calculate a borrower’s income directly from the borrower’s income documents.

Specifically, the company says that its software combines investor-based calculation guidance, digital data and refined optical character recognition to read, interpret, and calculate income based on paystubs, 1040 forms, W-2 forms, tax transcripts, and full tax returns.

According to the company, this is done through the ingestion of digital and/or OCR formats.

And now, Freddie Mac is making this service available to its lenders via the Loan Advisor Suite.

“We are pleased to be working with Freddie Mac on this state-of-the-art solution, as we collaborate to bring best of breed technologies to their customers, while driving reduced operational costs and delivering a superior borrower experience," Kirk Donaldson, LoanBeam’s president, said. “LoanBeam’s capabilities, quality and accuracy have been validated by Freddie Mac.”

Rick Lang, vice president of single family strategic delivery at Freddie Mac, said the government-sponsored enterprise chose LoanBeam because of its “unique expertise” and its software’s capabilities.

“Freddie Mac is actively working to further automate the lenders’ origination processes in Freddie Mac Loan Advisor Suite to help them reduce costs while maintaining quality,” Lang said. “We are collaborating with LoanBeam to bring income validation solutions for the industry to market. We chose LoanBeam because of their experience and unique expertise, including their ability to digitize borrower income data and derive monthly income in alignment with Freddie Mac’s requirements.”

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