Freddie updates LoanBeam-powered self-employed lending portal

Automating lending to the self-employed is more important than ever. To make the process easier for both lenders and borrowers, Freddie Mac had already integrated its Loan Product Advisor (LPA) asset and income modeler (AIM) for self-employed customers with LoanBeam’s automated income analyzing tool. Now the fintech also will power users with the ability to automate the recording and transfer of Internal Revenue Service (IRS) tax transcripts. The integration of the new IRS data sources begins this fall, Freddie said.

“We have witnessed dramatic changes to the business landscape this past year, none more so than the way individuals are earning income outside of the traditional workplace,” said Kirk Donaldson, founder of LoanBeam. “Lenders are looking for ways to improve income analysis and documentation confidence, and LoanBeam’s collaboration with Freddie Mac on income assessment will do exactly that.”

Freddie is leveraging optical character recognition (OCR) technology provided by LoanBeam to automate qualifying income calculations and expedite loan underwriting for the LPA powered AIM platform users. Lenders must register on and sign up on the Freddie Mac website to get stated.

LoanBeam’s portal enables Freddie approved lenders to confirm IRS tax transcript data directly from the AIM for self-employed borrowers who file taxes as Sole Proprietorships, S-Corporations and Partnerships. For almost two years, the fintech said, lenders have been leveraging LoanBeam’s technology to improve the loan processing flow and ensure income data accuracy.

“The ability to gain access to tax data directly from the IRS means this already successful and efficient solution gets even better,” said Kevin Kauffman, vice president of business partner integration at Freddie Mac. “LoanBeam’s continued growth and innovation further strengthen Freddie Mac’s and our shared clients’ risk mitigation efforts.”

Using certified IRS Tax Transcript data, representation and warranty relief will expand to include tax income data used in income calculations assessed by LPA, “mitigating buy-back risks related to qualifying income,” for lenders.

Additionally, LPA will expand the scope of representation and warranty relief-eligible income types to include rental, regular corporation (Type C), farm income, and income data on tax extensions. “The expansion of Freddie Mac’s credit box includes a greater portion of the borrower’s income that helps give lenders greater control to reduce risk,” according to the company website.

LoanBean is a Dallas-based subsidiary of Navesink Mortgage Services LLC that specializes in automated document conversion, income verification, income analysis and fee payments.   

Spruce teams up with Munich Re’s Digital Partners 

Proprietary technology, or PropTech, is helping expanding mortgage companies avoid some of the pain points of scaling operations globally. Spruce, a PropTech firm that enables mortgage lenders, real estate investors and fintechs to build scalable business infrastructure for a wide range of digital transactions, has teamed up with Digital Partners, a Munich Re company to provide automated new customer pricing.

The partnership reportedly aims “to help solve a historically stagnant aspect of the title insurance and mortgage industries: price.” It brings automated, cost-effective title insurance to the U.S. market by pairing Munich Re’s technology, risk expertise and financial strength with Spruce’s agile, API-driven technology.

Digital Partners facilitates go-to-market partnerships for insurance fintechs and distributors, through Munich Re, a provider of reinsurance, primary insurance, and insurance-risk solutions founded in 1880.

Support includes insurance underwriting, product expertise, data analytics, management and processing automation, and venture capital. In addition, U.S. homeowners, investors, and lenders continue to have direct access to Spruce’s digital real estate transaction process.

“The consumer experience is at the core of our mission,” said Patrick Burns, Spruce CEO and co-founder. “Our automated underwriting paired with the backing and security of Munich Re allows us to offer lower pricing for title insurance and a best-in-class experience for lenders, real estate companies, and consumers,” bringing real estate and mortgage transactions closer to a one-click checkout.

American Digital Title Insurance Company, owned by Digital Partners, will underwrite title insurance policies. The partnership with Munich Re also builds on Spruce’s existing relationship with Munich Re Ventures, which is an investor in the PropTech firm.

Headquartered in New York and operating in all 50 states, Spruce has enabled more than $3.5billion of transaction volume since launching in 2016, growing revenue at more than 400% annually, according to the company website.

Spruce’s partners benefit from its national scale and local expertise, combined with its PropTech model – which uses information technology (IT) to help individuals and companies research, buy, sell and manage real estate. 

Examples include allowing mortgage lenders, real estate investors, and other PropTech companies to scale confidently via automatic online payments for retail spaces occupied in a building owned by a property management company.

“The partnership aims to offer a faster and more efficient product for mortgage lenders, investors, and consumers,” said Dave Brune, North American CEO of Digital Partners and director of American Digital Title Insurance Company. 

Digital Partners teams up with tech startups that are using new tools to improve the entire insurance process for distributors and consumers, he added. “We’re excited to support Spruce’s unique tech-focused approach to alleviate some of the pain points for homebuyers and the mortgage industry.”

Nations adds four branches in Texas 

Nations Lending Corporation, a fast growing mortgage lender based in the Cleveland, Ohio area, has been busy strengthening its market presence in Texas. Following the recent opening of a new branch in North Texas, Nations announced the addition of four new branches in Midland, Odessa, El Paso and San Angelo in West Texas headed by Patty Marquez and Adam Herrera.

Marquez will serve as area manager for the offices in Midland, El Paso, San Angelo and Odessa. She will focus on growing each of the branches’ footprints within their individual markets via recruiting, marketing, and leadership.

Meanwhile Herrera will act as sales manager in all four locations. Marquez and Herrera live in West Texas, where both were born and raised. They have been in the mortgage industry for a combined 25 years.

Marquez is a proven business and community leader with stellar credentials. She is a featured speaker at conferences for the National Association of Professional Mortgage Women, currently serves as board member at the United Way of Odessa, Texas. Passionate about giving back, she actively contributes her time to her local community through various activities, including back-to-school backpack drives and free financial education classes on credit awareness and other topics.

“With Patty concentrating on growing their branches, and Adam leading the sales team, there is so much potential for growth in West Texas,” said Corey Caster, executive vice president of national production. “We’re so excited to have these two mortgage professionals open up this new market for us.”

Nations’ West Texas team will focus on serving first-time homebuyers and the Hispanic community. Hence, each of the team’s four offices employs multiple bilingual loan officers, the company noted in a statement. 

“Nations has the support we need to take our business to the next level,” Marquez said. “We have so many people in our corner from corporate who focus on our branding and on helping us generate more business.”

Nations lends in all 50 states and retains mortgage-servicing rights on 96% of the loans it originates, according to the company website. Currently it operates more than 90 branches across the U.S. 

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