| | JUNE 20208CIOReview"Big Data" is the buzz phrase in the business world. For the mortgage industry, responsible capture and analysis of data can uncover hidden patterns that reveal key insights that can be beneficial to the industry, its regulators, and its most important stakeholders--the consumer.In the mortgage industry, cutting-edge algorithmic models fueled by data analytics stand to help lenders underwrite mortgage loans more quickly and cost-effectively and, in turn, sell them to investors such as Freddie Mac. The bottom line: A better borrower and lender experience and a more liquid and financially sound housing market. By Andy Higginbotham, Chief Operating Officer, Single-Family, Freddie Mac [OTCQB: FMCC]INNOVATING TO CUT COSTS FOR MORTGAGE LENDERS, SAVE TIME AND MONEY FOR BORROWERS, AND EXPAND THE AVAILABILITY OF CREDITWhat Does Big Data Mean to the Mortgage Business?For mortgage lenders, data needed to underwrite loans and for modeling or other loan-related purposes comes from many sources. Those sources may include:· In-house records such as loan files, bank statements and brokerage accounts.· Third-party information such as credit scores and other traditional sources of underwriting data.In our business, data analytics translates this information into models that analyze and draw conclusions from the data and update these conclusions as new data become available. These models, in turn, allow lenders to make better decisions in a wider range of cases than they could otherwise do.IN MY OPINION
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