Freddie Mac plays a critical role in the U.S. housing finance system, focusing on liquidity, stability and affordability in the housing market. The organization continues to develop technology that simplifies the mortgage process and reduces costs for borrowers and lenders. One key innovation is Loan Product Advisor (LPA), an automated underwriting system enhanced to provide actionable insights, expand eligibility for appraisal alternatives and streamline workflows for lenders.
Through LPA, Freddie Mac is increasing accessibility to appraisal alternatives, with the automated collateral evaluation (ACE) appraisal waiver now available for purchase transactions up to 90% loan-to-value (LTV) ratios. The ACE+ property data report (PDR) waiver extends to borrowers with LTV ratios as high as 97% for specific programs like Home Possible®. These innovations aim to lower costs for borrowers, saving them over $1.63 billion in appraisal fees to date, while also aiding lower-income and first-time homebuyers.
Freddie Mac’s technology advancements include LPA Choice, offering detailed feedback on debt-to-income ratios and reserves, enabling lenders to convert more loans from cautionary to acceptable status. Additionally, the Asset and Income Modeler (AIM) leverages digital payroll and asset data to streamline employment verification, improve efficiency and enhance borrower experiences.
Freddie Mac also launched DPA One, a platform aggregating down payment assistance programs across all 50 states, aiding over 7,500 loan officers in connecting borrowers to critical resources. These innovations highlight Freddie Mac’s commitment to affordability and accessibility in housing.
