Over the years Freddie Mac has added automated offerings to LPA, such as automated collateral evaluation (ACE) that leverages Freddie Mac’s proprietary models, along with historical data and public records to, in certain situations, waive an appraisal
In the last few years Freddie Mac has also helped its lender and client partners as they look to include an upfront digital experience to the closing table.
Oliver said: “There’s been more of an appetite to get to what I call a true end-to-end digital mortgage including a digital closing – allowing the borrower to close on a loan from their own home with remote online notarization.”
Freddie Mac has gotten that feedback directly from their clients, who are getting it directly from their clients – the borrowers. It’s so important to keep a finger on the pulse of the industry by listening to what they’re asking for, he noted. “Consumers often wonder why they go through each step of a process to get a home loan electronically and then have to show up somewhere to sign a bunch of paper. (They ask) ‘What’s the point of that when I can do everything up to the closing table electronically?’”
With a mortgage technology market reputedly worth more than $10 billion today, the potential for even greater growth through the implementation of more sophisticated technology cannot be ignored, Oliver added.