The platform will “cut months off the current QC process for most lenders,” Sonu Mittal, executive vice president and head of single-family acquisitions at Freddie Mac, said in a statement.
“This new platform doubles down on our transparent and proactive approach to modernizing our QC processes,” Mittal said. “It provides considerable efficiencies for lenders so they can quickly identify and remediate issues as early as possible to minimize reoccurring defects and improve loan quality.”
Freddie Mac is onboarding lenders in phases, with full availability expected by year’s end. The rollout includes 500 lenders participating in a pilot program that offers loan repurchase alternatives.
In October 2024, Freddie Mac’s regulator, the Federal Housing Finance Agency (FHFA), announced that all approved lenders would gain access to a fee-based alternative for repurchasing performing loans with defects, expanding on a pilot launched earlier that year.
According to Freddie Mac, lenders in the pilot program saw a 26% lower nonacceptable quality rate than those outside the program, saving millions of dollars in performing loan repurchases.
Through the new platform, lenders can address issues like missing documents via real-time alerts, receive feedback on loan quality closer to origination and more efficiently remediate loan defects. They can access multiple reports, track loan review statuses and upload up to 250 loan files at a time, Freddie claims.
Because income-related deficiencies remain the primary driver of loan defects, Freddie Mac also introduced an income calculator that has already been used by more than 1,000 lenders across 15,000 submissions.
With these initiatives, “lender repurchase requests are down 56% from their peak in 2023,” Mittal said.
