CredEvolv Adds Freddie Mac Technology for Underwriting Tool Access
FinTech platform CredEvolv integrates with Freddie Mac HomeCoach, allowing housing advisors to use the same automated underwriting tools lenders use to assess mortgage eligibility.
CredEvolv takes the guesswork out of the credit repair process by providing a direct link between lenders and non-profit credit counselors to get credit-impaired consumers mortgage ready in five months or less on average.
HomeCoach integration increases efficiency for HUD-certified lenders and housing counselors; CredEvolv’s platform creates a streamlined communication process between lenders, advisors and consumers.
“We are thrilled to deliver such powerful innovation in credit counseling,” said Jeff Walker, CEO of CredEvolv. “By integrating HomeCoach into our platform, our credit counselors can now use the same automated underwriting tools that lenders use to assess mortgage readiness. This essentially eliminates any uncertainty that a credit coached consumer will qualify for a low down payment loan when that consumer reapply with their lender.
Often, when a consumer is denied a mortgage due to credit, that consumer is not offered any path to improve their credit and financial situation in order to be ready for the mortgage. They completely escape the loan process and are left to figure out how to improve their credit. Based on CredEvolv’s own historical data, few consumers will take this step on their own. Consumers who receive coaching from advisors are much more likely to achieve credit wellness and ultimately qualify for a mortgage.
With CredEvolv’s platform, a lender can digitally present a consumer whose credit has been denied directly to an advisor. Once the process is complete, the counselor can now generate a Freddie Mac HomeCoach feedback certificate, which indicates whether the consumer is ready to reapply to the lender.
“Freddie Mac and CredEvolv are truly aligned with our goal of helping connect the dots between lenders and nonprofit credit counselors, so they can help more consumers become homeowners,” says Cindy Waldron, vice -single-family president of research and analytics at Freddie Mac.
CredEvolv has also secured support from the National Foundation for Credit Counseling (NFCC), whose member agencies educate and coach consumers in credit difficulty.
“The CredEvolv concept of empowering an advisor to help clients prepare for mortgage by integrating tools such as HomeCoach, managing client referrals with lenders and facilitating document management, has the game-changing potential for fee-for-service models,” comments Jenn Pizi, COO for NFCC. “This enhancement will allow advisors to better assess different scenarios, position clients for better outcomes, and can serve as the backbone of a scalable and highly trusted advisory process.”