Freddie Mac has automated the assessment of mortgage borrowers without credit scores, allowing lenders to serve more prospective homebuyers who could otherwise be denied a loan due to lacking credit. The automated underwriting process gives lenders a better impression of whether Freddie Mac will purchase loans for applicants without scores, and, in doing so, expands credit accessibility by lessening lenders’ overall risk.
“We’re committed to supporting responsible lending and improving access to credit for all borrowers, including first-time homebuyers, low- and moderate-income buyers and underserved populations,” says David Lowman, executive vice president of Freddie Mac’s Single-Family Business. “It’s important that we keep pace with the evolving needs of the U.S. market and help support sustainable homeownership.”
Applicants without scores will be evaluated based on sufficient payment references, including records showing timely housing payments, through Freddie Mac’s Loan Product Advisor®.
Automated assessments will be available for eligible borrowers applying for purchase or no-cash-out refinance loans starting in June.
Source: Freddie Mac
For the latest real estate news and trends, bookmark RISMedia.com.
