United StatesFinance and insurance2025 – ongoingFreddie Mac
Machine learning in Loan Product Advisor underwriting
Freddie Mac added machine learning to its underwriting system and said lenders using its automation save about $1,500 per loan
Problem
Mortgage lenders face high loan origination costs and long production cycles, and a large part of that cost sits in underwriting.
Approach
In May 2025 Freddie Mac announced enhancements to Loan Product Advisor, its automated underwriting system, using machine learning to automate underwriting. The changes took effect immediately. Freddie Mac said its own analysis of lenders using LPA automation showed lower cost and shorter cycle times.
Results
Takeaway
The savings figures describe lenders using LPA automation in general, not the machine learning update alone.
Categories
- Industry
- Finance and insurance
- Business function
- Production and qualityFinance, risk and legal
- Innovation type
- Process innovation
- AI technology
- Predictive analytics and ML
- Adoption
- Built in-house
- Evidence
- Company's own claim
Sources
Source summaries
Trade-press report on Freddie Mac's machine learning update to Loan Product Advisor, effective immediately. It cites Freddie Mac's internal analysis that lenders using LPA automation cut costs by $1,500 per loan (about 14%) and shortened production cycles by an average of five days.
Full details are in the original sources.