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Freddie Mac, ABA Alliance Offers Greater Mortgage Assistance to Lenders

handshakeIn an effort to provide banks with access to more mortgage products and services, Freddie Mac and the American Bankers Association (ABA) announced Friday that the two have renewed their alliance.

Through its Corporation for American Banking subsidiary, the ABA will now be able to provide its member banks with solutions to help their mortgage lending business.

The ABA operates as the voice of the nation's $16 trillion banking industry, which is made up of regional and large banks. These banks hold a total of $11 trillion in deposits and extend nearly $8 trillion in loans.

"We are pleased to announce the renewal of our Freddie Mac alliance," said Bryan Luke, Chairman of ABA's Endorsed Solutions Banker Advisory Council and President and COO of Hawaii National Bank in Honolulu. "Through our partnership with Freddie Mac, our members have access to solutions that improve the origination process, enhance servicing, and improve responsible access to credit."

According to a press release from Freddie Mac, the alliance offers ABA member banks access to "enhanced pricing and execution, mortgage products, and professional training and development opportunities.

"For more than a decade, our alliance with ABA has helped its members create more opportunities for borrowers and realize new possibilities for their businesses," said Chris Boyle, SVP and Head of Single-Family Sales and Relationship Management, Freddie Mac. "We take special pride in our relationship with ABA and look forward to providing their member banks with continuous support in today's growing purchase market."

ABA Member Benefits:

  • Customized secondary market solutions to maximize your profitability
  • Reduced service fees from third-party services to expand your overall mortgage business opportunities
  • Price advantages and execution benefits

Click here to see more products and services from the alliance.

This news comes just months after the ABA reported in its 22nd Annual Real Estate Lending Survey that 90 percent of the typical bank’s mortgage loans made last year were qualified mortgages (QMs). The survey also found that 78 percent of respondents expect the Consumer Financial Protection Bureau’s (CFPB’s) Dodd-Frank mortgage lending rules will continue to limit credit availability, while 19 percent labeled the impact as severe.

“As expected, the ability-to-repay and QM rules have dampened the housing market recovery,” said Robert Davis, EVP at the American Bankers Association. “Combine that with new mortgage disclosures, which are just around the corner, and we’ll continue to see a slow down in what should be the ideal time to buy a home.”

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