Freddie Mac adds mortgage quality control automation tool

Core Insights - Freddie Mac is addressing persistent challenges of fraud and misrepresentation in the mortgage industry by launching Quality Control Advisor Plus, an automated compliance tool aimed at improving loan quality and efficiency [1][4] Group 1: Quality Control Advisor Plus - Quality Control Advisor Plus integrates previously separate technologies, significantly reducing the quality control process time for users [3] - The platform allows lenders to upload up to 250 files simultaneously for analysis, promoting consistent decision-making and standardized communication [4] - The tool is currently in a phased onboarding process, with plans for full availability to all lenders by year-end [1] Group 2: Impact on Loan Quality - Participants in Freddie Mac's pilot program experience a 26% lower rate of non-acceptable quality loans compared to non-participants [2] - The use of Freddie Mac's digital tools, such as the Asset and Income Modeler (AIM), correlates with lower defect rates, with loans from users of these tools being four times less likely to have defects [6] - Freddie Mac's repurchase demands have decreased by 56% from their peak in 2023 due to the pilot program, indicating positive industry feedback [6] Group 3: Industry Response - Industry leaders view Quality Control Advisor Plus as a significant step towards enhancing manufacturing quality in the mortgage sector [12] - The platform's exception data can lead to more accurate assessments of loan quality and risk, benefiting both originators and the secondary market [13] - The technology is seen as a means to expedite processes and improve quality, addressing long-standing inefficiencies in the mortgage industry [15][17]