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Back in August, LoanLogics announced it was the technology provider behind the Freddie Automated Servicing Transfer (FASTSM) tool, helping Freddie Mac streamline its Cash-Released XChangeSM program. LoanLogics is also set to provide technology enhancements in support of Freddie Mac’s Co-Issue XChangeSM with the same technology.
This was a proud moment for the company, given all the hard work our teams put into not only the ongoing development of the product itself, LoanLogics IDEA™ (Intelligent Data Extraction & Automation), but also into implementing the solution for Freddie Mac.
Hakan Beygo, senior director, Single-Family Office of the Client, said, “As we researched the possibilities for building out our FASTSM tool, it rapidly became clear that LoanLogics was ahead of others in their technology offerings, and the only entity that could provide an end-to-end solution “out of the box.”
A few of our existing clients shared with Freddie how LoanLogics IDEA™ had provided a great lift to their productivity by helping them normalize the receipt of loan file packages. Once we were formally connected and understood their needs, we were able to demonstrate our capabilities firsthand. This led us to a signed agreement within a relatively short amount of time.
The results of FASTSM have been outstanding and have resulted in many of the program’s loan buyers circling back about 2-3 months after “go live” to ask for the collection of more data, which is to us is a healthy sign. After they see results that are good and accurate, they want to expand the data feed with 30-40 more extractions. That’s been pretty common.
There is also certainly an economic benefit directly to the buyers. The process we have automated was performed previously by every buyer, one way or another, whether through their own automation or other offshore/onshore manual resources.
There are workflow steps that have been removed, costs that been removed and now there’s a level of assurance around the accuracy of the data that has gone up. All three of those are valuable wins for everybody involved.
A lot of our largest clients are within the top 15 correspondent buyers in the marketplace, which has fed our experience and ultimately ability to scale.
These buyers have a tremendous amount of volume that sways with the market. As three to four-hundred-page loan files come in, we touch a couple hundred thousand files a month and we take roughly 3000 extractions of what we call LoanFacts™ per loan off of those documents. In essence, we are talking about hundreds of millions of images, pages and data points that are being evaluated on a monthly basis. That is scale.
Anecdotally, there are others in the market that are in a similar product category who don’t have 10-15% of that scale, nor do they have the 10-11-year history of experience and volume that we do.
Working with these correspondent lenders, and now Freddie Mac, we have unique insights about the whole process between sellers and buyers and how to make it a better experience through the use of technology. We understand the sequence of delivery, stacking order requirements and the need for open communication between the two parties to facilitate the process, versus the old practice of throwing it (the loan) over the wall and hoping for the best. The need for more data and data purity is also central to success for any market participant in the transfer of loan files and risk mitigation.
Our accomplishments with Freddie Mac and other big-name players, specifically in the correspondent space, validates the work we have done on our products over the past eight to 10 years. As a company our vision is clear for where we are headed so stay tuned.
Want more insight on how Freddie Mac and LoanLogics have simplified the most challenging aspect of servicing transfers with FAST? Tune into this podcast or read the press release on the announcement.
So many lenders struggle with data issues after a transfer FAST sounds wonderful.
Congratulations, Craig! Excellent article!!