Loan Quality Advisor FAQ
General Loan Quality Advisor Questions
Find answers and advice for Freddie Mac's risk and eligibility assessment tool.
What is Loan Quality Advisor?
Loan Quality Advisor is a risk and eligibility assessment tool that evaluates loan data to help lenders determine if a loan is eligible for sale to Freddie Mac. Loan Quality Advisor provides you with information about Freddie Mac’s risk assessment and eligibility requirements at the point(s) in the process where it is most useful to you.
What services does Loan Quality Advisor offer?
- Loan Product Advisor Data Compare – Helps you determine whether the Loan Product Advisor® result is still valid by providing a comparison view of current loan data submitted to Loan Quality Advisor against loan data used in the last Loan Product Advisor submission.
- Risk Assessment – Provides Freddie Mac's view of risk on non-Loan Product Advisor-originated loans.
- Purchase Eligibility – Provides an early view of comprehensive purchase edits by running the same purchase eligibility rules run in Loan Selling Advisor at loan delivery.
How can Loan Quality Advisor help my business?
Loan Quality Advisor helps improve efficiency in your business’ processes by helping you identify and resolve credit, data and purchase eligibility issues before you deliver loans to Freddie Mac.
- Helps you determine whether third parties have originated a loan according to Freddie Mac eligibility requirements.
- Gives you an early view of loan delivery issues.
- Helps reduce the time it takes to obtain post-purchase funding at loan delivery.
- Helps you identify loan production defect trends and proactively resolve them.
- Can be used anywhere in the loan origination process – from underwriting to loan delivery.
How can I best use Loan Quality Advisor?
While Loan Quality Advisor can be leveraged multiple places within the loan creation process, here are some of the ways we have seen it implemented by lenders to date:
- Loan Product Advisor Data Compare service just prior to closing the loan to determine that no changes have occurred that would impact the Loan Product Advisor Accept risk class and corresponding relief of representation and warranties.
- Risk Assessment is for loans originated outside of Loan Product Advisor. Use this service prior to closing the loan to get a summary of Freddie Mac’s credit risk assessment and/or prior to making your best execution decision.
- Purchase Eligibility runs data quality and purchase eligibility rules exactly like those run at loan delivery, enabling you to resolve potential purchase eligibility issues prior to delivery. This is valuable right before loan closing, when the full Uniform Loan Delivery Data file is likely close to complete, or as part of a post-closing quality control process in anticipation of loan delivery.
- If purchasing from third-party originators, all services can also be beneficial in understanding the eligibility of the loan prior to making a final commitment on that loan
Together these services can help increase your confidence in the eligibility of loans you sell to Freddie Mac.
Am I required to run all my loans through Loan Quality Advisor before delivering them to Freddie Mac?
No. You are not required to use Loan Quality Advisor on loan submissions. However, we encourage you to use it to assist you in identifying loan eligibility issues before loans are sold to Freddie Mac. Using Loan Quality Advisor during your loan manufacturing process helps provide you with greater certainty that the loans you sell to Freddie Mac meet our requirements.
Is there a fee to use Loan Quality Advisor?
No. Loan Quality Advisor is free.