NAMB Applauds GSEs for Upcoming Changes
NAMB—The Association of Mortgage Professionals has applauded 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.
Fannie Mae 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 Certainty, and while some features of the program are available now, the entire program is expected to become available Dec 10.
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 Freddie Mac’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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