New Fannie Mae Program Address Reps and Warranties Issues

Fannie Mae has unveiled a new program designed ease the representations and warranties aspects on mortgage origination.

Under the new Day 1 Certainty Program, Fannie Mae will offer lenders income, assets, and employment validation services to lenders through its Desktop Underwriter system. Fannie Mae stated the program will “will provide freedom from representations and warranties on appraised values through Collateral Underwriter and enhanced waivers of property inspection requirements on refinances.”

The income validation aspect of the program is now available today, while the asset and employment validation aspects and the changes via Collateral Underwriter will be available on December 10.

“Day 1 Certainty is a major step forward in helping our customers transform the mortgage origination process,” said Timothy J. Mayopoulos, president and CEO at Fannie Mae. “Ultimately, we want our customers to have the confidence to lend, so that more qualified borrowers have access to affordable mortgage credit.”