Freddie Mac (OTCQB: FMCC) has updated its automated income assessment tool to include tax transcripts as a new data source.
According to the government-sponsored enterprise, the enhancement will provide lenders with another tool to better automate income assessments while expanding access to homeownership by qualified self-employed borrowers who report income on IRS Form Schedule C (sole proprietors). The new capability is available to mortgage lenders nationwide through Freddie Mac’s Loan Product Advisor asset and income modeler.
“The traditional underwriting process for self-employed individuals is a pain point for lenders and borrowers as it can be more complex and time-consuming,” said Kevin Kauffman, single-family vice president of seller engagement at Freddie Mac. “The incorporation of verified tax transcript data into Loan Product Advisor’s automated assessment for these individuals will help reduce risk and provide a fast, convenient and precise method to expand access to credit in this tight purchase market.”
