NAMB Applauds the Fannie Mae and Freddie Mac for Upcoming Changes

10/25/2016

FOR IMMEDIATE RELEASE                                 

October 25, 2016

Contact: Nathan S. Pierce                                                      

NAMB Communications Chair

801-272-0600

 

NAMB Applauds the Fannie Mae and Freddie Mac for Upcoming Changes

 

PLANO, TX, October 25, 2016—NAMB—The Association of Mortgage Professionals applauds recent announcements made by both Fannie Mae and Freddie Mac in regards to representation and warranty procedures. Reps and warrants are the rules under which the government-sponsored entities (GSEs) can require the repurchase of loans by lenders.

Fannie Mae will ease potential buyback requirements by lenders when a borrower’s income, assets, and employment information are validated through Desktop Underwriting, its automated underwriting system.

The government-sponsored entity will also provide relief on appraisals when a qualifying score is received using Collateral Underwriting. Collateral Underwriting evaluates risk incurred by an appraisal. Property inspection waivers will be expanded for refinance transactions when using Desktop Underwriting.

The program is being called Day 1 CertaintyTM, while some features of the program are available now the entire program is expected to be available December 10th.

Freddie Mac has also made an announcement that it will be enhancing its Loan Advisor Suite to included expanded reps and warrants relief to lenders in 2017. Lenders that use the GSE’s Loan Advisor Suite tools will be eligible for relief under new guidelines being tested currently.

“We commend Fannie Mae and Freddie Mac for making these adjustments that will help get more consumers into homes by decreasing cost and simplifying the process,” said Fred Kreger, CMC, NAMB President.

While NAMB does not believe that these changes will address every challenge being faced by the mortgage industry they appear to be a step in the right direction.

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NAMB—The Association of Mortgage Professionals is a trade association of mortgage professionals with membership in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage industry. For more information, visit NAMB.org.

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