Freddie Mac CIO Looks Towards IT to Improve the Mortgage Process
Being a leader in the mortgage industry, Freddie Mac is now heavily focused on digital technology. Read this blog to learn some recent news about the company.
The Federal Home Loan Mortgage Corporation, also known as Freddie Mac, is focusing more on digital technology as we turn the page to 2020. Frank Nazzaro, the company’s acting chief information officer, is now taking on the role on a permanent basis as the company aims to tackle challenges by using digital technology. The main goal of this approach is to increase the number of home loan approvals for a larger group of qualified buyers.
This position is relatively new for Frank, who has worked as acting CIO since May 2019. Mr. Nazzaro took over for Stacey Goodman, who is now the CIO of Prudential Financial Inc.
While reporting to Freddie Mac Chief Executive David Brickman, Frank will be in charge of the IT division while setting his sights on an overall technology strategy. Mr. Nazzaro has been working at Freddie Mac since 2018 and started as the chief technology officer.
In a recent discussion regarding the current mortgage industry, Navarro went on to say that there is a strong need to learn how to balance aggressive IT modernization efforts with minimizing the negative effects for end-users and customers. “And, of chief importance, it must be done in a secure way,” he continued.
Frank also added, “The overarching goal of this work is to improve velocity, reduce cost and increase quality throughout the mortgage process.”
But although Nazarro aims to bring a lot of changes via digital technology, Freddie Mac already has some digital initiatives in the works. They are currently utilizing advanced analytics, machine learning, and more up-and-coming tools. These are all used to make processes more efficient and to also work towards improving risk management.
As technology is improving and Freddie Mac has the right team in place, the sky’s the limit for the technology division at the company.
Freddie Mac, who was first established almost 50 years ago, is not a lender. Instead, the organization buys loans, then repackages them as mortgage-backed securities. That being said, Freddie Mac competes with other loan-pooling groups like banks, insurers, and even their larger cousin, Fannie Mae.
Back during the financial crisis in the United States, Fannie Mae and Freddie were actually seized by the government because they were taking too much risk without the right means to account for the potential losses. The Trump administration is currently looking into returning them to private hands.
If more money is available for mortgages, Fannie and Freddie are then able to increase loan approval, which in turn leads to more home sales, more revenue, and more successful businesses.
If Freddie Mac can continue to be a leader at quickly and properly guiding lending risk, that can have a lasting effect on its success as a business and for the whole U.S. economy. And whenever there is a financial crisis, mortgage-backed securities play a huge role.
Freddie Mac Chief Executive David Brickman mentioned that Frank’s promotion comes at “the right moment to deliver technology solutions that make us faster, smarter and more efficient.”
As the mortgage landscape is going through some changes, a focus on IT and digital processes is what the company needs to have long-term success.
As Freddie Mac has increased the number of digital tools that they utilize, they look to expand even more. One tech strategy that the company has played around with is called agile. This is a streamlined approach to software development, which became popular thanks to Silicon Valley firms.
Frank Nazzaro has high hopes for the technology future of Freddie Mac, and he mentions that he wants to focus on empowering his smaller teams across the business and technology divisions within the company. He aims to have these teams work more collaboratively and efficiently to solve business needs, while also integrating agile practices.
Stay Ahead with GenIX
Here at GenIX Technologies, we’re happy to be a highly experienced and top-rated Los Angeles IT support business located in Los Angeles, California. Our team always stays up-to-date on the latest advancements in the industry, and your specific needs are always our main concern.
Contact GenIX today to take your technology to the next level!