GSEs’ cost-cutting tools: The per-loan savings breakdown

The government-sponsored enterprises say they have been leaning into cost savings, some of which have been passed on to lenders and borrowers. Below, a breakdown of the specific figures behind those gains.  

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Freddie Mac Chief Financial Officer Jim Whitlinger said that there is a “continued focus on operational efficiency” in a recent earnings call.

And Peter Akwaboah, acting CEO at Fannie Mae, said in his comments on second-quarter earnings that the enterprise has been investing in capabilities that “will drive long-term value for borrowers and business partners.”

To see what kinds of quantifiable benefits such efficiency goals have had for lenders or borrowers, NMN examined what some of the estimates for money or time savings connected to a representative sample of initiatives at the enterprises have been like.

These show some initiatives have directly cut costs by hundreds of dollars per loan and more on a collective basis. In some cases these efficiencies have been expressed in gains related to productivity, risk management or business prospects rather than monetary figures.

The estimates that follow represent anecdotal efficiencies and may not reflect the full scope of all the GSEs’ efforts to save time or money. They also may not account for other developments or ancillary risks resulting from a change that could impact net savings from an initiative.

Efficiency metrics

Fannie’s Title Acceptance pilot has helped thousands of refinancing borrowers save an average of $500 to $1,500 per transaction. Rate, a lender testing the concept, said savings can be as high as $2,000 in a state like New Jersey. 

The estimated savings for Freddie’s Lender Title Assessment program are similar at $500 to $2,000, depending on the location and loan amount.

Appraisal modernization at Fannie, which has introduced a range of options between traditional home valuations and waivers that leverage property data, has saved borrowers an average of $399 per loan.

Freddie estimates that its automated collateral evaluation has saved borrowers almost $2.6 billion since 2017. An update to its cost to originate study in 2025 shows ACE is the biggest cost saver when it comes to individual tech tool use and can cut expenses by around $370 per loan.

Fannie’s Condo Project Manager, an online tool aimed at giving lenders a path to more efficient building eligibility determinations, contributed to approvals that saved borrowers an estimated $17.5 million collectively between 2024 and May 2026. 

Maximized use of Freddie’s tech tools has multiplied savings, according to the GSE’s analysis of the impact on costs, margins and cycle times. In second-quarter 2025, lenders using Freddie’s digital capabilities for 75% or more of their loan sales to the GSE reduced their spending by $1,700 per loan compared to those applying the tech tools to less than 60% of their production.

More than 50% of all loan acquisitions run through Fannie’s Desktop Underwriter may be eligible for repurchase relief due to a DU update related to undisclosed non-mortgage liabilities. The tool automatically evaluates risks in this area that might surface prior to closing.

Freddie’s LPA Choice, which was designed to help lenders that receive “caution” feedback on a loan know how to clear hurdles preventing acceptance, has helped increase deliveries to the GSE by around 85,000 in the past year. Roughly one-third of these were first-time buyers.