Loan Prospector (LP)

A Loan Prospector (LP) is an automated underwriting system of Freddie Mac. Once we receive your Home Loan Application, the contents of the application are transferred to the Loan Prospector for analysis and quick approval, whether or not the your home loan application meets the guidelines set by Freddie Mac. 

The Loan Prospector (LP) determines the borrowers ability to repay and the guidelines of Freddie Mac by taking into account the loan amount, subject property for purchase, Income, Assets, Liabilities, Debt to Income ratio (DTI) and other aspects to issue a quick approval based upon the contents of the Uniform Residential Loan Application. The Loan Prospector (LP) is also integrated with third party vendors to make the process efficient and to verify whether or not the borrower's financial situation conforms to the guidelines of Freddie Mac.

Fannie Mae's underwriting system is known as the Desktop Underwriter (DU). Both the Desktop Underwriter (DU) and the Loan Prospector do the same thing, however they use a slightly different matrix to analyze the borrower's credit report. 

Having one system does the job, however in some cases, if one system denies the loan, we run your application through the second system to seek a quick approval. 

About the Author: Ahsan Bashir is an experienced Tax Consultant based in Irving, Texas, with over 25 years of expertise spanning Taxation, Accounting, Business Lending and Mortgage, Risk Management, Business Insurance, and Business Consulting. Through his firm, Z-Tax & Accounting, he provides comprehensive financial services including Individual and Business Tax Preparation, Bookkeeping, Payroll Processing, and Business Consulting. As an Enrolled Agent authorized to practice before the Internal Revenue Service (IRS), and an IRS Certifying Acceptance Agent (CAA), Ahsan Bashir delivers trusted, professional solutions tailored to the unique needs of both individuals and businesses. 

NMLS: 1965714, NPN: 7702637, PTIN: P01280330, TX Online SOS Notary ID: 126282896

Related Topics:          What is a Desktop Underwriter (DU)          What is Fannie Mae           What is Freddie Mac            Uniform Residential Loan Application               What are the Factors taken into consideration when reviewing an applicant’s ability to repay a loan?               What is Debt to Income Ratio and how is DTI calculated             

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