Freddie Mac has partnered with Zest AI, a software company for credit underwriting, to improve its credit decisioning models for managing risk.
“Freddie Mac and Zest share the goal of making economic opportunity possible for more people,” Mike de Vere, CEO of Zest AI, said in a release. “With Zest software, Freddie’s already best-in-class modeling and fair lending teams will have the latest tools to help provide more borrowers access to homeownership.”
According to the release, Zest’s model management system enables lenders to analyze credit data to help increase approval rates and reduce the risk of faulty credit decisions. It also provides explanations for its data modeling results to assist in measuring business impact and complying with regulatory requirements.
“Freddie Mac is always evaluating technology solutions that meet our high standards and support our continued commitment to expanding homeownership opportunities responsibly, especially among first-time homebuyers, communities of color, and those living in underserved markets,” said Michael Bradley, Freddie Mac senior vice president of modeling, econometrics, data science and analytics for its single-family business. “Zest allows us to do our machine-learning modeling work more efficiently and with less operational risk.”