Freddie Mac announced yesterday that under Bulletin 2021-32 it will now accept third-party integrations to validate borrower income information provided in loss mitigation applications without requiring additional documentation. Enabling homeowners to supply their payroll and bank information without the need for paper.
This represents another step forward in the digital transformation of mortgage servicing. With Freddie Mac now nearly equal to Fannie Mae in the number of single-family loans issued, this will ensure that the entire GSE single-family market is able to leverage a more digitally streamlined process. This gives homeowners the convenience of supplying their financial information, without the need for fax machines, scanners, or stamps. Resulting in a faster resolution of the loss mitigation process and increasing the chances of keeping families in their homes.
At Brace, we have already been using third-party asset reporting for the last 2 years, Bulletin 2021-32 brings Freddie Mac into alignment with the policy approved by Fannie Mae for third-party asset reporting in June 2021. We are seeing over 20% of homeowners using our portal and integrations to supply their assets digitally. This advancement has enabled our customers, which include some of the top 10 largest U.S. Servicers, to receive fully complete loss mitigation applications in a single document, reducing the need to hunt for stray documents. Not only has it made the process faster, but it has also extended the Servicers’ reach, expanding recapture to homeowners who traditionally would not have engaged with their Servicer through traditional channels.
