Freddie Mac has updated its automated income assessment tool to include digital pay stub data. That’s in addition to direct deposit data. This will help lenders to calculate income faster and more precisely.
It will also help them to improve loan quality, simplify the mortgage process, and expand access to credit, particularly for first-time homebuyers and underserved markets.
The tool is available nationwide through Freddie Mac’s Loan Product Advisor (LPA). It can also assess income from tax returns and bank account data to identify positive monthly cash flow activity.
The new capability will be available to Freddie Mac-approved Sellers using Loan Product Advisor beginning June 7, 2023.