Freddie Mac is seeking an edge in the automated underwriting business by introducing software intended to improve communication among lenders, vendors, and loan purchasers.
The software, called Gold Com, "will become the primary way in which we communicate with partners, and we expect it to become the standard for the industry," Freddie Mac president David W. Glenn said at the system's rollout on Monday.
Gold Com is a single system that mortgage lenders can use to communicate with various parties involved in originations, such as Freddie Mac for automated underwriting.
Although the Internet-based system was developed by Freddie Mac, the other major mortgage agency, Fannie Mae, also could use it to help lenders that use Fannie's automated underwriting services, a Freddie Mac spokeswoman said.
Freddie Mac began testing Gold Com in the spring with ALE Systems, Fitech Systems, and other vendors of loan origination technology.
Lenders are starting to use the system, which is being offered without charge.
"It will help us better communicate data" among "Flagstar, Freddie Mac, and vendors such as credit rating agencies," said David Bowers, senior vice president at Flagstar Bank, Bloomfield Hills, Mich.