Last year, Freddie Mac added some technological muscle to its Loan Advisor Suite, partnering with LoanBeam to improve the income verification capabilities of its underwriting program.
LoanBeam’s software provides automated income extraction and calculation, meaning the software is able to calculate a borrower’s income directly from the borrower’s income documents.
Now, Freddie Mac and LoanBeam are making that automated income calculation available for self-employed borrowers.
According to Freddie Mac, using LoanBeam’s software helps simplify the process for calculating the income of a self-employed borrower, which will help speed up the underwriting process.
Under the partnership, LoanBeam’s technology will be integrated with Freddie Mac’s Loan Product Advisor, one of the tools made available to lenders as part of Freddie Mac’s Loan Advisor Suite.
The offering will “execute automated interpretations and calculations” that are based on the income on tax returns provided by self-employed borrowers, in alignment with Freddie Mac’s lending guidelines.
Dave Lowman, executive vice president of Freddie Mac’s single-family business, said that providing lenders with the tools to underwrite self-employed borrowers will help the mortgage market succeed.
“In the current competitive purchase market, lenders who better serve the expanding self-employed borrower market will have a competitive advantage and be able to grow their businesses,” Lowman said.
“Our partnership with LoanBeam is another example of how Freddie Mac is reimagining the mortgage experience to meet the needs of the growing self- employed community,” Lowman added. “We are helping qualified borrowers on the leading edge of the changing workforce realize their dream of homeownership by focusing on how to enable our clients to do more business in a more efficient manner.”
LoanBeam’s software combines investor-based calculation guidance, digital data and refined optical character recognition to read, interpret, and calculate income based on pay stubs, 1040 forms, W-2 forms, tax transcripts, and full tax returns.
“Our collaboration with Freddie Mac is going well and we are excited for the next phase of fully integrating our solution through Loan Product Advisor,” said Kirk Donaldson, LoanBeam's president. “We encourage lenders to build LoanBeam’s existing solution into their processes now so they will be ready once it is integrated with Freddie Mac’s offering later this summer.”
According to Freddie Mac, the offering is expected to be available to its lender clients this summer.
