ABA Banking Journal
Sponsored Content Presented by Freddie Mac
Since the 2008 housing crisis, the cost of originating a loan has more than doubled. Recent data reports that origination costs rose from an average of $3,685 per loan in 2009 to $7,747 by the end of 2015.
In the first quarter of this year alone, costs rose $667 per loan.
Reasons for the cost increases include new regulatory compliance requirements and the addition of numerous manual checklist processes to avoid future repurchase risk.
This summer, Freddie Mac is introducing Loan Advisor Suite, its new end-to-end technology solution designed with lenders for lenders to help to lower cost, improve efficiency, reduce risk, and provide greater certainty during the loan production process.
Loan Advisor Suite will help lenders deliver high-quality loans and acquire earlier insight into their eligibility for representation and warranty relief.
“We took our time developing this technology, and partnered with our lenders,” says Chris Boyle, senior vice president at Freddie Mac. “Their objectives were our objectives: greater certainty, usability, reliability, and efficiency. We used thousands of their suggestions to ensure that Loan Advisor Suite will meet or exceed the demands of the people who are personally responsible for manufacturing high-quality loans.”
Loan Advisor Suite is designed to be easy-to-use and intuitive. Screens are clean and uncluttered. Tool icons are intuitive and logically organized. Lenders can access all of Freddie Mac’s loan production applications and all of their loan data through a single sign-on portal and/or their loan origination system. Lenders simply leverage the right tool as different sets of data arrive at the appropriate points in the origination process.
The Suite adds several game-changing solutions to Freddie Mac’s current roster of lender tools and applications: Loan Collateral AdvisorSM, Loan Product AdvisorSM, Loan Closing AdvisorSM, and Business Intelligence. In addition, Freddie Mac is greatly enhancing Loan Quality Advisor, Loan Coverage Advisor and our Selling System.
Loan Product Advisor is the next generation of Loan Prospector and the cornerstone of the Suite. Lenders, for example, will see major changes in the feedback certificate. “The Feedback Certificate has been completely redesigned and feedback messages are easy to understand, actionable and loan specific,” explains Boyle. “Lenders will see at a glance everything they need to know about a loan.”
“Perhaps the most innovative new capability is Business Intelligence,” adds Boyle. “After signing on to Loan Advisor Suite, lenders can use Business Intelligence to monitor their transaction data, at the loan or summary level, for one tool or the entire Suite. All the data from the different tools a lender uses is pulled into a simple snapshot designed to make pipeline reporting, peer comparisons, and trend analysis easier.”
Loan Advisor Suite brings all of its different pieces together in a revolutionary way. It’s a simpler, better way to do business.