Lenders using FormFree's AccountChek with LPA will
immediately benefit from this enhancement once it is announced in
the July publication of the Freddie Mac Single-Family
Seller/Service Guide.
ATHENS,
Ga., June 30, 2022 /PRNewswire/ --
FormFree® announced that mortgage lenders using
AccountChek® verification of asset (VOA) reports in
conjunction with a Freddie Mac Loan Product Advisor®
(LPASM) solution will soon benefit from an enhancement
that takes loan applicants' 12-month on-time rent payment history
into consideration when assessing eligibility for qualified
first-time homebuyers.
The enhancement, which is effective once announced in the
Freddie Mac July Guide Bulletin, is designed to expand sustainable
homeownership for the millions of Americans by taking their rent
payment history into account when assessing eligibility. The
expansion of rent payment history can increase the number of
mortgage loan applicants who receive an Eligible/Accept
recommendation in LPA.
"Freddie Mac is focused on offering value to our clients and
improving the borrower experience as we continue to modernize the
mortgage process," said Kevin
Kauffman, Freddie Mac Single-Family Vice President of Client
and Partner Delivery. "FormFree has been a strong partner on this
journey by helping lenders assess credit eligibility for qualified
first-time homebuyers."
LPA will automatically identify on-time rent payments —
including those made via mobile apps like Venmo, Zelle and
Paypal — within AccountChek VOA reports and take them into
consideration when assessing eligibility for qualified first-time
homebuyers. Only on-time rent payments will be considered; LPA will
not assess late or missing rent payments.
"Freddie Mac's move to have Loan Product Advisor consider rent
payment history in its assessment is part of a much larger push for
more equitable home financing practices," said FormFree Chief
Customer Officer Christy Moss.
"People of color, who have disproportionately low homeownership
rates and are overrepresented among credit invisible consumers will
be most positively impacted by this enhancement to LPA."
"FormFree takes great pride in helping borrowers communicate
their ability to pay and equipping lenders with the tools to
confidently and efficiently verify borrower credentials," continued
Moss. "We look forward to supporting Freddie Mac as it continues to
deploy technology that improves access to sustainable credit for
homebuyers."
Lenders can leverage rent payment history assessment through LPA
asset and income modeler (AIM) when they order AccountChek reports
of any length, including 30-, 60-, 90- and 180-day reports. In
supplying LPA with 12 months of rent payment history, AccountChek
has established safeguards that ensure the collection of extended
rent payment history does not expose lenders to non-rent
transactions, such as large gift deposits, that occurred more than
90 days in the past.
"FormFree remains committed to developing and supporting
solutions that correct the racial homeownership gap," said FormFree
Founder and CEO Brent Chandler.
"Using FICO scores alone to evaluate creditworthiness excludes a
large swath of minority homeowners who pay their rent on time and
responsibly manage their finances without borrowing money from
creditors. Direct source financial data is the key to understanding
consumers' true ability and FormFree applauds Freddie Mac's efforts
to help lenders finance homeownership more equitably."
For more information, visit https://www.formfree.com/rent/.
About
FormFree®
FormFree® is a market-leading fintech company whose
revolutionary products AccountChek® and
Passport® make for a more inclusive credit decisioning
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 U.S. lenders and
brokers have ordered millions of FormFree's patented verification
reports representing trillions of dollars in loan verifications.
FormFree delights borrowers and lenders with a paperless
experience, dramatically reduces origination timelines and offers
automated analysis and standardized delivery to lenders and
investors using a secure ReIssueKey®. For more
information, visit https://www.formfree.com/ or follow
FormFree on LinkedIn.
Twitter: @FreddieMac @RealFormFree #mortgageindustry #fintech
#digitalmortgage
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