Freddie Mac's reference pools are among the industry's largest and most diversified
Freddie Mac's CRT program is backed by its 3-pronged risk management system that is fueled by clean and transparent data. Mortgages are required to meet the credit and underwriting standards of the Freddie Mac Single-Family Seller/Servicer Guide. Freddie Mac continuously collaborates with sellers and servicers to deliver the best results for borrowers and practice the best loss-mitigation practices for investors.
Lenders use Freddie Mac's automated underwriting system, Loan Product Advisor®, and other tools in Loan AdvisorSM to help in their underwriting of loans in CRT pools. This allows for earlier discovery of underwriting defects.
Once loans are purchased, they are subject to a strict quality control (QC) process that aims at promoting eligibility compliance and manufacturing quality.
CRT issuances undergo internal and third-party due diligence processes.