Freddie Will Use Technology Vendors
Gone are the days that Freddie Mac will look to build all of its technology in-house. The GSE said at the MBA tech show here that it will look to the market to buy technology and integrate it within its enterprise.
In the past, both GSEs have been accused of building proprietary technology to force the industry to do things according to their methodology. This gradual encroaching on the technology space is not acceptable and will not happen at Freddie Mac, said its executives at the MBA event.
"We have come to a point where the industry has matured," said Ed Albrigo, VP of change management at Freddie. "Also, technology standards have matured. There are also new investors that have come to the market aside from just Fannie and Freddie that vendors have created scalable solutions for, which means they have matured to a point where they can deal with our scale and volume."
In making this transition, Freddie realizes that there will be pros and cons. "Change integration is a problem when you're building your technology," said Mr. Albrigo, "which is one of the reasons why we're looking out there to see if there's someone that can do it better."
Freddie will incorporate this outside technology to allow the GSE to be more scalable itself and speed up its time to market. Freddie will look to incorporate the MISMO standards as much as possible to create nonproprietary interfaces. Also, the technology will be integrated within Freddie Mac in a service-oriented architecture to allow the GSE to adapt to future technology changes and be more agile.
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