Freddie Mac on Thursday greenlighted lenders’ use of two companies that validate self-employed borrowers’ income, while also approving a buildout of an existing provider’s services. The agency also confirmed final approval of a firm that facilitates the equivalent for standard incomes.
LoanBeam’s new services and the addition of CoreLogic and LoanCraft give lenders more choice when it comes to self-employed income verification, and the broad rollout of Finicity’s product
These vendors can make it easier for borrowers to authorize data releases that validate their loan information’s integrity. More choice between vendors could improve the service in this area, as mortgage lenders with
Finicity’s information can now broadly be used in conjunction with validation of a mortgage applicant’s data through technology called Asset and Income Modeler. AIM is a part of Freddie’s Loan Product Advisor automated underwriting system.
The vendor’s technology allows applicants with mainstream payroll providers to use a single sign-on session and roughly a dozen click-throughs to submit their information. Mortgage applicants whose finances can’t easily be verified through large payroll providers may still have to submit traditional documents like pay stubs or tax records, but many borrowers will be able to use the service.
The LoanBeam offering Freddie approved confirms via LPA that a self-employed borrower’s tax transcript data matches data from returns processed through the vendor’s technology.
LoanBeam has facilitated
