The American Bankers Association has renewed its secondary market relationship with Freddie Mac. The two sides first entered into this partnership 10 years ago.
Among the benefits of the relationship to ABA members includes access to Mortgagebot with Loan Prospector, which offers a private-label bank-branded website for originating mortgages tied into Freddie Mac's LP automated underwriting service in order to attract more borrowers online. There is also enhanced secondary market execution for ABA members as well as training opportunities.
When Freddie Mac and ABA first entered into this relationship, the banking trade group said among its members that will benefit most are those banks that do not have a large enough origination volume on their own. A spokeswoman for ABA said the goal remains to help its members get access to the secondary market.
Participants must be approved as Freddie Mac seller/servicers.
ABA has nine strategic alliances, including one with Fannie Mae.
Some of the options that were part of the original agreement 10 years ago are no longer in place, such as a private-label subservicing option, the ABA spokeswoman said.
Freddie Mac had similar arrangements with other trade groups 10 years ago, including the America's Community Bankers, which is now merged into ABA. A spokesman says the company currently has alliances with the Credit Union National Association and the Independent Community Bankers of America.
