Guild Mortgage is advocating for Fannie Mae and Freddie Mac to adopt residual income analysis at scale through ongoing conversations and data sharing.

The California-based lender has used this model since 2022 in its “Complete Rate Program” that’s available for government loans. Because Guild retains servicing and issues the loans in Ginnie Mae pools, the company is able to set its own risk-based pricing grids.

But Guild believes the program has the potential to gain scale under the umbrella of the government-sponsored enterprises (GSEs), allowing the industry to stop over-reliance on credit scores, according to David Battany, the company’s executive vice president of capital markets.

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