Freddie Mac has announced an integration of LoanBeam technology into its Loan Product Advisor that is focused on improving the lending process for self-employed borrowers.
Citing research data, Freddie Mac said about 44 million working Americans are either self-employed or working for the self-employed and that 43% of the workforce will be made up of freelance workers by 2020.
The integration automates the calculation of a self-employed borrower’s income when underwriting a mortgage through Freddie Mac's automated underwriting system. Freddie Mac said the integration, which is the latest stage of its initiative with LoanBeam, will ultimately reduce the time for processing the request.
Using the self-employed borrowers’ tax returns, the integration will execute automated interpretations and calculations of the income and aligns these to Freddie Mac’s guidelines. Freddie Mac expects to make the offering available to its lender clients this summer.
"In the current competitive purchase market, lenders who better serve the expanding self-employed borrower market will have a competitive advantage and be able to grow their businesses," said Dave Lowman, executive vice president of Freddie Mac's single-family business. "Our partnership with LoanBeam is another example of how Freddie Mac is reimagining the mortgage experience to meet the needs of the growing self-employed community."