The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

A real estate professor weighs in on the future of MLSs

According to research done by Sonia Gilbukh, a real estate professor at Baruch College, there are some reasons to be concerned about the current number of real estate agents and the future of MLSs.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

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Freddie Mac helps lenders bring self-employed underwriting into the digital age

Q&A with Andrew Higginbotham on new asset and income modeler and LoanBeam integration

HW sat down with Andrew Higginbotham, senior vice president and chief operating officer, single-family, at Freddie Mac, to talk about the company’s new asset and income modeler (AIM) for self-employed borrowers.

Q. What led Freddie Mac to expand its highly-successful AIM program to include income assessment for self-employed borrowers?

higginA. Today’s mortgage and housing industry cannot operate efficiently using yesterday’s tools and our clients know that success with their customers depends on improving service. There are millions of self-employed workers in the United States and that number is only expected to grow, which means traditional underwriting standards and techniques won’t accommodate this new demographic.

We are working to develop cutting-edge algorithmic models fueled by data analytics to help our lenders underwrite quality loans quickly and cost-effectively. The bottom line: a better borrower and lender experience and a more liquid and financially sound housing market.

Q. How is Freddie Mac preparing to better serve future borrowers?

A. We are always thinking about ways to better serve the housing industry, its clients and borrowers. Our Loan Product Advisor AIM for the self-employed provides our lenders with a new way to make their processes more efficient – to cut costs and reduce cycle times.

It gives them a competitive edge to expand their business in a tightening purchase market by penetrating a growing, underserved market, and it gives them confidence that the loans they deliver align with Freddie Mac’s purchase eligibility requirements as captured in Loan Product Advisor. With our AIM for self-employed program, we are able to open the door to an easier mortgage experience for an entire group of potential borrowers who were previously underserved by the traditional methods.

Q. What benefits do lenders get by using the AIM for self-employed borrowers offering?

A. That’s a good question. By creating a more streamlined process for underwriting loans for self-employed borrowers, we have been able to make the process more efficient for both the lender and borrower, and even been able to save lenders up to $200 in the process.

Determining the stable monthly income used to qualify self-employed borrowers used to be a challenging, tedious, and mostly manual process. One of our clients recently said that through AIM, it approved self-employed borrower mortgages in two thirds of the time it usually took, and it reduced closing times by about five days.

Q. How does Freddie Mac’s AIM for self-employed differ from other offerings in the market?

A. Success breeds success, and we’ve integrated LoanBeam’s technology into Freddie Mac’s Loan Product Advisor, our toolbox of products and programs that enhances the automated underwriting system and helps simplify the loan origination process, making AIM for self-employed the industry’s only automated underwriting integrated solution for self-employed borrower income assessment.

AIM for self-employed borrowers automates qualifying income calculations using LoanBeam’s underlying optical character recognition technology that has been refined over 14 years and used across millions of tax documents. What’s unique about our solution with LoanBeam is that the integration with Loan Product Advisor facilitates data to be exchanged automatically between the lender, LoanBeam, and Freddie Mac so results are seen more quickly.

Best of all, AIM for self-employed helps lenders close loans faster, provides immediate rep and warranty relief related to certain borrower income, and simplifies lender underwriting of this growing borrower segment.

Q. How does AIM for self-employed fit into Freddie Mac’s overall strategy of technology within the mortgage industry?

A. Freddie Mac is continuously innovating to better meet our lenders’ needs to cut costs, drive efficiency and deliver a better borrower experience, and this is just one more way we offer lenders and borrowers the Freddie Edge.

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So far this year, every existing home sales print has been higher in 2021 than the closing level of sales in 2020, which was 5,640,000. Even with the unhealthy home price gains that we have seen in the last two years, more Americans have bought homes with mortgages in 2020 and 2021 than any single year from 2008-2019, and this looks perfectly normal with our current demographics. HW+ Premium Content

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3d rendering of a row of luxury townhouses along a street

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