LoanBeam and Freddie Mac to further Integrate its Income Solution with Loan Product Advisor

Banking CIO Outlook | Friday, October 09, 2020

LoanBeam's technology underpins the mortgage approval process of the nation's most recognizable brands.

FREMONT, CA: LoanBeam announced that Freddie Mac would further integrate its income solution, including IRS tax transcript data, with Loan Product Advisor (LPASM). For almost two years, lenders have been leveraging LoanBeam through LPA AIM for self-employed to improve their process flow and achieve income confidence on Sole Proprietorships, S-Corporations, and Partnerships.

"We have witnessed dramatic changes to the business landscape this past year, none more so than the way individuals are earning income outside of the traditional workplace," said Kirk Donaldson, LoanBeam Founder. "Lenders are looking for ways to improve income analysis and documentation confidence, and LoanBeam's collaboration with Freddie Mac on income assessment will do exactly that," Donaldson continued.

To meet the market demand for more acceptable income types and greater upfront certainty, LoanBeam has further refined its technology, making it possible for Freddie Mac to enrich and expand its AIM for self-employed offering to their mutual clients.

"The ability to gain access to tax data directly from the IRS means this already successful and efficient solution gets even better," said Kevin Kauffman, Vice President of Business Partner Integration at Freddie Mac. "LoanBeam's continued growth and innovation further strengthen Freddie Mac's and our shared clients' risk mitigation efforts."

Using certified IRS Tax Transcript data, representation, and warranty relief will be expanded to include tax income data used in income calculations. This means lenders can be confident that the income calculations and income data are assessed by LPA, mitigating buy-back risks related to qualifying income.

Additionally, LPA will expand the scope of rep and warranty relief-eligible income types to include rental, regular corporation (Type C), and farm income, as well as incorporating income data included on tax extensions. The expansion of Freddie Mac's credit box consists of a more significant portion of the borrower's income, giving lenders greater control to reduce risk.

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