Equifax Inc., a global information solutions company, announced that it will be working with Freddie Mac to fully automate the assessment of borrower income. This will be done via the integration of Equifax’s income verification tool, The Work Number, with Freddie Mac’s Loan Advisor asset assessment tool. The goal will be to streamline the process for homebuyers working with Freddie Mac to secure a mortgage, thus making the origination process easier and more efficient from point-of-sale through securitization.
Equifax’s Work Number database is the nation's largest centralized repository of payroll data, containing more than 350 million payroll records. Equifax made its income verification data available to Freddie Mac last year as part of a limited release, but Freddie Mac now plans to offer it broadly to its clients in the coming months.
Through Loan Product Advisor, the cornerstone of Freddie Mac Loan Advisor Suite, automated asset assessment capabilities relieve lenders from certain representations and warranties. The automated tool seeks to lower the cost of the origination process for lenders and borrowers.
"We're focused on helping our lenders reduce costs, maintain high-quality loans and deliver a superior borrower experience," said Samuel E. Oliver III, VP of Major Project Execution for Single Families at Freddie Mac. "Our collaboration with Equifax to expedite the assessment of income is giving our clients this competitive advantage."
"We're thrilled to be working with Freddie Mac to reimagine and automate the mortgage experience and to ultimately provide the industry with insights to help drive more informed lending decisions," said Jennifer Henry, VP of Equifax Mortgage Services. "We now support the two most prominent GSEs which gives lenders the flexibility they require to deliver a superior digitally-empowered customer experience."