Freddie Mac employs multiple strategies to maintain optimal loan quality and data transparency:
Underwriting standards – captured by Loan Advisor – position loans to meet requirements for eligibility, documentation and representation and warranties. Loan quality control practices – including post-close credit review and the underwriting defects repurchase process – position loans to perform at or above expected levels. Robust seller/servicer management – including in-house quality control and performance monitoring – provides that quality control is maintained for loans sold and/or serviced by third-parties.
Freddie Mac’s Credit Risk Transfer program has revolutionized how the U.S. housing market operates. Supported by an advanced Risk Management framework, the program contributes to sustained efficiency in the housing market. Freddie Mac continues to pursue financial innovations, leveraging new technologies and powerful data to optimize loan manufacturing quality, data transparency and timely performance reporting.
Find out how Credit Risk Transfer creates investor opportunities while strengthening the U.S. mortgage market.