Lenders using FormFree’s AccountChek with LPA will immediately benefit from this enhancement once it is announced in the July issue of the Freddie Mac Single-Family Seller/Service Guide.
ATHENS, Ga., June 30, 2022 /PRNewswire/ — FormFree® announced that mortgage lenders using AccountChek® Asset Verification Reports (AVRs) in conjunction with a Freddie Mac Loan Product Advisor® (PLASM) will soon benefit from an enhancement that will take into consideration the 12-month rent payment history of loan applicants when assessing the eligibility of qualified first-time buyers.
The improvement, which goes into effect when announced in the Freddie Mac July Guide Bulletin, is designed to extend sustainable homeownership to millions of Americans by taking into account their rent payment history when renting. eligibility assessment. Expanding rent payment history may increase the number of mortgage applicants who receive an Eligible/Accepted recommendation in LPA.
“Freddie Mac is focused on delivering value to our customers and improving the borrower experience as we continue to modernize the mortgage process,” said Kevin Kauffman, Freddie Mac Single-Family Vice President of Customer and Partner Delivery. “FormFree has been a strong partner in this journey helping lenders assess the credit eligibility of qualified first time buyers.”
LPA will automatically identify on-time rent payments – including those made through mobile apps such as Venmo, Zelle, and Paypal – in AccountChek VOA reports and take them into consideration when assessing the eligibility of qualified homebuyers. . Only one-time rent payments will be considered; LPA will not assess late or missing rent payments.
“Freddie Mac’s decision to have the loan product advisor consider rent payment history in its assessment is part of a much larger campaign for fairer home financing practices,” said FormFree’s Chief Customer Officer. Christy Moss. “People of color, who have disproportionately low homeownership rates and are overrepresented among invisible consumers of credit, will be most positively impacted by this LPA improvement.”
“FormFree takes great pride in helping borrowers communicate their ability to pay and providing lenders with the tools to confidently and effectively verify borrower credentials,” Moss continued. “We look forward to supporting Freddie Mac as he continues to deploy technology that improves access to sustainable credit for homebuyers.”
Lenders can take advantage of assessing rent payment history through the LPA Asset and Income Modeler (AIM) when ordering AccountChek reports of any length, including 30 , 60, 90 and 180 days. By providing LPA with 12 months of rent payment history, AccountChek has established safeguards that ensure that collecting an extended rent payment history does not expose lenders to non-rent related transactions, such as large gift deposits, which occurred more than 90 days in the past.
“FormFree remains committed to developing and supporting solutions that close the racial gap between landlords,” said FormFree Founder and CEO. Brent Chandler. “Using FICO scores alone to assess creditworthiness excludes a large number of minority landlords who pay their rent on time and manage their finances responsibly without borrowing money from creditors. Direct source financial data is key to understand consumers’ true capacity and FormFree applauds Freddie Mac’s efforts to help lenders finance homeownership more fairly.
For more information, visit https://www.formfree.com/rent/.
FormFree® is a market-leading fintech company whose revolutionary products AccountChek® and Passport® create a more inclusive credit decision landscape by enabling lenders to understand people’s true ability to pay (ATP®). Our vision is to leverage source data and data-driven intelligence to usher in a new era of transparent, fair and liquid credit markets. To date, thousands of US lenders and brokers have ordered millions of patented Verification Reports from FormFree representing trillions of dollars in loan verifications. FormFree delights borrowers and lenders with a paperless experience, dramatically reduces origination times, and offers automated analysis and standardized delivery to lenders and investors using a secure ReIssueKey®. For more information, visit https://www.formfree.com/ Where follow FormFree on LinkedIn.
Twitter: @FreddieMac @RealFormFree #mortgageindustry #fintech #digitalmortgage
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