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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 16 February 2025 M T E C H Industry Update FREDDIE MAC, ICE COLLABORATION OFFERS LENDERS GREATER EFFICIENCIES WHEN ORIGINATING LOANS L enders may now underwrite mortgage loans more rapidly and effectively, beginning at the point of sale, according to improve- ments unveiled by Freddie Mac and Intercontinental Exchange, Inc. (ICE), which take advantage of both business- es' automation capabilities. "Together, Freddie Mac and ICE have leveraged our organizations' unique technological strengths to help lenders originate more mortgages in this challenging market," said Freddie Mac's Kevin Kauffman, SVP, Seller En- gagement, Single-Family Acquisitions. "The result is empowering lenders to originate more loans eligible for sale to Freddie Mac without changing their workflow. We're also arming lend- ers with more detailed information around purchase requirements as well as cost-saving options for first-time homebuyers." Lenders now have more integrated access to the newest features of Freddie Mac's automation underwriting system, Loan Product Advisor (LPA), through Encompass, ICE's popular digital mort- gage lending platform. The dual AUS function offered by the Encompass Underwriting Center offers: • Access to Freddie Mac's LPA Choice feedback messages, which offer actionable responses to help lenders make faster, informed decisions and turn more Cautions messages to Accepts. Feedback messages include information about debt-to-income ratios, loan-to-value ratios, and reserves. • Feedback on whether a given loan is eligible for employment representa- tion and warranty relief. • Access to critical LPA messages high- lighting Freddie Mac's automated collateral evaluation (ACE) and ACE+ PDR appraisal alternatives. "ICE is actively digitizing mortgage lending; integrating systems, solutions and processes to provide maximum value for lenders and households alike," said Tim Bowler, President of ICE's mortgage technology division. "By virtue of this collaboration, Encompass users can now seamlessly access Fred- die Mac's latest LPA offerings as part of their existing workflows. As always, the goal is to increase efficiency, lower costs and help lenders put more qualified borrowers into homes they can afford." The features in Freddie Mac's LPA as- sist lenders in automating the evaluation of borrower assets, income, and employ- ment while detecting the presence of favorable cash flow or a history of regular rent payments that may have a beneficial effect on the risk assessment. According to a recent investigation, the likelihood of flaws in loans generat- ed by lenders who use specific Freddie Mac automated offers is up to four times lower than that of loans that do not use this technology. Since problems with income verification make up over one-third of all buy transaction flaws, process automation is particularly helpful for recording income in both collection and assessment. A&D MORTGAGE SET TO ACQUIRE WHOLESALE MORTGAGE ORIGINATION BUSINESS A &D Mortgage, LLC (A&D Mortgage) has announced the signing of a definitive agreement to acquire the wholesale and non-delegated correspondent mortgage business from Mr. Cooper Group Inc. (Mr. Cooper). Mr. Cooper previously acquired the wholesale and non-del- egated mortgage business as part of a separate transaction in November 2024. "We took a very careful and measured approach to finding a potential partner to grow our QM business," said Max Slyu- sarchuk, CEO of A&D Mortgage. "A&D's goal is to be an industry leader, and this