Tuesday, September 24, 2019

ZestFinance In Test With Freddie Mac

Los Angeles-based fintech startup ZestFinance appears to be on the cusp of a deal with housing finance giant Freddie Mac, according to a report today in the WSJ. The report said that Freddie Mac is testing underwriting software from ZestFinance, which could help make more mortgages available for first time home buyers and minorities. The report--citing "people familiar with the matter"--did not say how far along the tests have gone, or if Freddie Mac will ultimately tap ZestFinance for those tools. ZestFinance is using machine learning and artificial intelligence to make more accurate credit decisions. The testing with Freddie Mac reportedly are being used by the mortgage provider to assess if its software can improve the accuracy of its own risk models.