Freddie Mac’s recent expansion of Loan Product Advisor® (LPA SM) asset and income modeler (AIM) provides lenders with a smoother closing process and more opportunity to assess for representation and warranty (R&W) relief eligibility related to the borrower’s current employment.
Here’s what you’ll learn in this post:
- What the new update to AIM means for lenders
- How it enhances employment verification
- What lenders need to do (hint: not much)
What’s New with LPA AIM?
Freddie Mac has long offered R&W relief eligibility for requirements related to assets and income, helping lenders gain confidence in their underwriting process with automated solutions. But employment was a different story.
Until now, R&W relief was not available on the front end, when lenders verify employment before loan approval, or on the back end, during the 10-day pre-close verification. Now, with the update, lenders can submit bank deposit data from AccountChek reports to have LPA assess R&W relief eligibility for both income and employment at approval and again at closing. That means a smoother, more automated process from start to finish.
How IR’s AccountChek Makes This Easier
If you’re using IR’s AccountChek Verification of Assets (VOA) & Digital Verification of Employment (DVOE) reports, you’re already set up to leverage this new capability. Both VOA and DVOE reports provide you with the bank deposit data LPA needs to check for employment R&W relief eligibility.
What does this mean for you?
- A smoother process: Using a consistent approach (bank deposit data) for both VOE at approval and again at closing reduces juggling extra steps.
- Increased confidence: You can move forward knowing R&W relief is available.
- More savings: Verifications completed using bank data are typically lower in cost compared to other verification methods.
What Do You Need to Do?
Freddie Mac rolled out the update effective October 14th. As such, when you submit AccountChek VOA or DVOE data to LPA, you’ll automatically see new feedback messaging for this enhancement in your LPA results.
No additional integrations. No extra steps. Just a more efficient way to verify employment.
We recommend the following Freddie Mac resources to learn more about this enhancement:
At IR, we’re excited to see how this change will help our lender partners save time, reduce stress, and close more loans. Have any questions? Our team is here to help.
Simpler processes. Fewer hurdles. More confidence. That’s what we’re all about.
