Freddie Mac announced new automated underwriting capabilities designed to allow lenders to verify assets, income and employment using borrower-approved bank account data. This functionality is available to mortgage lenders nationwide through the asset and income modeler (AIM) in Freddie Mac Loan Product Advisor, the company’s automated underwriting system.
“This industry-first innovation supports our mission of making sustainable homeownership more affordable and accessible,” Freddie Mac Single-Family Chief Operating Officer Andy Higginbotham said. “Our AIM suite of services will be instrumental in bringing greater accuracy and efficiency to the underwriting process, which will be critical as the mortgage landscape continues to shift toward greater purchase market activity.”
A recent Freddie Mac study found that by adopting automated offerings (like AIM), lenders can increase efficiency and shorten cycle times by as much as 15 days. These efficiency increases provide up to a 30-percent reduction in loan origination costs, greater customer satisfaction and an increase in applications being completed and closed.
“Freddie Mac’s focus on risk management is critical to delivering on our mission in all economic cycles,” Freddie Mac Single-Family Chief Credit Officer Terri Merlino said. “These enhancements to our underwriting system increase accuracy and reduce fraud by sourcing bank account data. They also reduce manual underwriting errors and delays created by the back-and-forth document paperchase.”