Loan Quality Advisor FAQ

• Loan Product Advisor Data Compare – Compares your current intended loan delivery data to the loan data in the last Loan Product Advisor submission and identifies data discrepancies.
• Risk Assessment – Assesses credit risk on non-Loan Product Advisor-originated loans, by indicating whether a Loan Product Advisor Accept or a Loan Product Advisor Caution is likely if submitted to Loan Product Advisor.
• Purchase Eligibility – Provides an early view of purchase edits by running the same purchase eligibility rules run in Loan Selling Advisor at loan delivery.

Loan Quality Advisor can help 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.

• Assesses credit risk for loans not originated using Loan Product Advisor.
• Helps determine whether third parties have originated a loan according to Guide requirements.
• Provides early view of potential loan delivery issues.
• May help reduce the time it takes to obtain post-purchase funding at loan delivery.
• Helps identify loan production defect trends in order for them to be proactively resolved.
• Can be used anywhere in the loan origination process – from underwriting to loan delivery.

Loan Quality Advisor can be leveraged multiple places within the loan creation process. Here are some ways we have seen lenders implement it to date:

• Run the Loan Product Advisor Data Compare service prior to loan delivery to identify whether changes have occurred that could 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 to obtain Loan Quality Advisor’s risk assessment prior to closing the loan and/or prior to making your best execution decision.
• Purchase Eligibility assesses loans using the same rules as Freddie Mac’s Loan Selling Advisor® and provides associated feedback and error messages, 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, leverage all services to help you assess eligibility for sale to Freddie Mac prior to your purchase.

These services increase confidence in the eligibility of loans you sell to Freddie Mac.

Loans originated outside of Loan Product Advisor must be assessed by Loan Quality Advisor and receive a Loan Quality Advisor Risk Assessment of “GREEN” to be eligible for sale to Freddie Mac. For Loan Product Advisor originated loans, you are not required to use Loan Quality Advisor. However, we encourage use of it in identifying loan eligibility issues before loans are sold to Freddie Mac. Using Loan Quality Advisor during your loan manufacturing process can provide greater certainty that the loans you sell to Freddie Mac meet our requirements.

No. Loan Quality Advisor is free.

No.

No.

Yes. All credit reports, including soft credit pulls, must include trended credit data.

Note: For all loans sold to Freddie Mac, the credit report must generate an inquiry that will be identified on subsequent credit reports (i.e., hard credit pull) as required in Guide Section 5203.1.

Loan Quality Advisor will not assess the loan and will return an error message.

No.