Freddie Mac – Loan & Contract Recalculation Modernization

Client:
Freddie Mac
Date:
June 1, 2019
Categories:
Case Study
Tags:
Regulated Financial, Cloud Modernization, CMMI-Governed

Freddie Mac operates under federal conservatorship, which means its technology systems face compliance obligations that mirror federal agency requirements — documentation standards, change control, audit readiness, and zero tolerance for recalculation errors on loan portfolios that back the US mortgage market.

The legacy loan and contract recalculation system Sapot Systems was asked to modernize had accumulated significant technical debt over years of incremental change. It was slow, difficult to audit, and architecturally incompatible with the cloud-native direction Freddie Mac was moving toward. The modernization needed to happen without disrupting the accuracy of the calculations it performed — calculations that affect borrower obligations and investor reporting alike.

Sapot Systems led the decomposition of the legacy platform into a cloud-native, microservices-based architecture using Java 17, Spring Boot, and secure RESTful APIs deployed on AWS. Every phase of delivery was governed under CMMI Level 3 process discipline, with 100% audit-ready documentation produced for regulatory review. The team of six engineers worked across an 18-month engagement to deliver the new platform on time and on scope.

The results: recalculation throughput improved by 55%, system uptime reached 99.98%, and the platform passed regulatory documentation review with complete traceability across all calculation paths.

Why this matters for federal work: This is the closest analog in Sapot Systems' portfolio to a direct federal modernization engagement. Freddie Mac's compliance environment — GSE conservatorship, federal oversight, CMMI-governed delivery, audit-ready documentation — maps almost directly to the requirements of federal system modernization projects. It demonstrates that Sapot Systems can operate in environments where compliance is not a checkbox but a core delivery requirement.

Modernizing a legacy financial platform under full regulatory scrutiny — on time, on scope, audit-ready.

Sapot Systems modernized a legacy loan and contract recalculation system into a cloud-native, microservices-based platform using Java 17, Spring Boot, and secure RESTful APIs on AWS. The engagement required CMMI-governed delivery, 100% audit-ready documentation, and zero-tolerance for recalculation errors in a regulated financial environment aligned to federal compliance standards.

Engagement details: Team: 6 engineers · Duration: 18 months · Environment: Regulated financial

What we delivered:

  • Legacy platform decomposed into cloud-native microservices on AWS
  • Secure RESTful API architecture with full audit trail
  • 100% audit-ready documentation for regulatory review
  • CMMI Level 3 governed delivery throughout

Results:

  • 55% improvement in recalculation throughput
  • 99.98% system uptime achieved
  • 100% audit-ready documentation delivered for regulatory reviews

Relevance to federal: Freddie Mac operates under federal conservatorship with GSE-level compliance requirements — documentation standards, change control, and audit obligations directly comparable to federal program delivery.