Freddie Mac has launched a new, automated capability that allows mortgage lenders to assess a prospective homebuyer’s income paid through direct deposit.
The company says its new technology will reduce the paper documentation burden on borrowers so they can close loans faster and simplify the lending process, and will help lenders provide sustainable homeownership for more borrowers.
This income assessment solution is available to mortgage lenders nationwide through Freddie Mac’s Loan Product Advisor (LPASM) asset and income modeler (AIM).
“Our direct deposit solution is an innovative, data-driven approach that takes minutes, not days to assess income so our clients can serve more borrowers more efficiently,” said Matt Vincent, Freddie Mac single-family vice-president of credit and capacity. “Sourcing data directly from the mortgage applicant’s bank account increases accuracy, removes subjectivity, reduces manual underwriting errors and delivers a better experience for borrowers and lenders.”