McLEAN, Va. -- Freddie Mac (NYSE: FRE) debuts a new tool today for housing counselors to help them better serve first-time homebuyers. Loan Prospector Outreach is the first-of-its kind tool to help housing counselors assess the readiness of their clients to apply for a mortgage and help lenders get more qualified mortgage leads.
"Developing and making Loan Prospector Outreach available is one of the ways Freddie Mac is living up to its mission to expand homeownership opportunities," said Tricia McClung, vice president of Housing and Community Investment for Freddie Mac. "By utilizing the technology of Loan Prospector Outreach we are helping counselors better serve their clients while at the same time helping them become a stronger sourcing channel for lenders."
"We are encouraging lenders to work closely with housing counselors to broaden their customer base by reaching more first-time homebuyers, families in underserved communities and immigrants," McClung added.
Housing counselors are the first point of contact for many first-time homebuyers, including new immigrants and minorities. They work with more than one million individuals a year.
How Loan Prospector Outreach Works
The housing counselor inputs the client’s data into Loan Prospector Outreach, reviews the client’s credit history, and considers the various financing and mortgage options. Loan Prospector Outreach conducts a client assessment in just minutes, returning either a "Ready to Apply" or "Continue Counseling" indication. When the client is ready to apply, Loan Prospector Outreach provides the housing counselor with an automated way to transition the client’s information -- with the client’s consent -- to a participating lender. At that time, the lender is able to easily access the client’s data through LoanProspector.com in order to make a lending decision.
If a "continue counseling" message is received, additional feedback is provided to assist the housing counselor in developing an individualized program of continued counseling.
"We are helping housing counselors take the guesswork out of client assessments by giving them an objective tool that helps determine if their client is ready to apply for a mortgage or if they need to work on getting their financial situation in order," said McClung. "Loan Prospector Outreach enables housing counselors to quickly identify the clients who most need their help."
Freddie Mac is working with lenders across the country to make Loan Prospector Outreach available to the housing counselors with whom they work.
HSBC Mortgage Corporation (USA) recently trained on Loan Prospector Outreach and says the new tool will help them source more loans in underserved communities. HSBC is working with West Side Neighborhood Housing Services in Buffalo, NY.
"For HSBC Mortgage Corporation (USA), Loan Prospector Outreach is a win-win situation; promoting the dream of homeownership for our underserved neighborhoods while strengthening HSBC’s relationship with local community-based organizations across the state," said James Ahrens, senior vice president, product management/marketing for HSBC.
Linda Chiarenza Executive Director of West Side Neighborhood Housing Services, said, "West Side NHS is thrilled to be participating in Loan Prospector Outreach. This is a wonderful tool to help our clients get on the road to achieving the American Dream of homeownership."
The Housing Partnership counseling organization in Louisville, KY, finds Loan Prospector Outreach easy to use. "In our community, we are the primary resource for many first-time homebuyers, minorities and immigrants who want to learn more about homeownership," said Christie McCravy, director, HomeOwnership Program, The Housing Partnership. "Using Loan Prospector Outreach allows us to better assess client readiness with product guidelines. The system is easy to use and helps to expedite the bank application process by assisting in matching clients with the most appropriate affordable products."
