Large application Mortgage lenders that embrace automation enjoy fewer loan errors and reduced loan origination time and costs compared to lenders that use less technology.
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Intercontinental Exchange’s digital mortgage platform, Encompass, has been enhanced to offer deeper integration with Freddie Mac’s automated mortgage underwriting system, Loan Product Advisor (LPA).
Encompass now has access to feedback messages from a Loan Product Advisor that provides “actionable answers” when issues arise about credit and income ratings, loan-to-value ratios and savings, helping lenders “make faster, more informed decisions and turn more alerts into acceptance,” it said. Freddie Mac on Wednesday.
Compass users also receive feedback on whether a loan qualifies for performance and warranty waivers, and whether a loan may qualify for auto appraisals and other appraisal methods.
Tim Bowler
“Encopass users can now seamlessly access Freddie Mac’s latest LPA offerings as part of their existing workflow,” ICE Mortgage Technology President Tim Bowler said in a statement. “As always, the goal is to increase efficiency, lower costs and help lenders get qualified borrowers into homes they can afford.”
Technology lowers the loan factor rate
Lenders who embrace technology experience lower loan error rates than their competitors. Source: Freddie Mac
Freddie Mac pointed to a February 2023 study that found lenders that accepted their automated offers had 40 percent fewer loan problems, saved $1,700 in costs and reduced loan origination times by seven days compared to lenders that used less technology.
Kevin Kauffman
The technology “enables lenders to find more loans suitable for sale at Freddie Mac without changing their workflow,” Freddie Mac CEO Kevin Kauffman said in a statement. “We also equip lenders with detailed information on the purchasing needs and cost-saving options of first-time homebuyers.”
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