After deeper integration of Freddie Mac and LoanBeam technologies, representation and warranty relief will be expanded for mortgage lenders who provide loans to self-employed borrowers.
According to a press release LoanBeam issued this week during Freddie Mac's Connect customer conference, the enhanced tax income data relief will be available this fall.
The new integration provides early-stage revenue verification directly from the Internal Revenue Service in conjunction with calculations that LoanBeam provides to lenders. Freddie Mac offers the relief when the data can be verified. Loan Beam will charge an additional fee for the verification.
"This compares and validates the data we extracted from tax returns against the IRS tax data," said Roby Robertson, senior vice president at LoanBeam.
The move comes two years after Freddie Mac first embarked on an integration with LoanBeam, which gives mortgage lenders who sell loans to government-sponsored companies access to agents and convenience with income calculations. The provider performs these income calculations after extracting data from documents using optical character recognition.
Mortgage lenders are keen to get more relief from their responsibility of representation and to ensure that the home loan data points they submit to Freddie Mac and Fannie Mae are accurate.
This is especially true now as Fannie Mae and Freddie Mac mortgage lenders tend to make more loan repurchase requests because of incorrect data when the market risk is relatively higher.