Edward DeMarco, acting director of the Federal Housing Finance Agency, said Monday that Fannie Mae and Freddie Mac will launch a new representation and warranty framework that will ease repurchase obligations on lenders after borrowers build a history of on-time payments, between 30 to 120 days after loan purchase.
Lenders participating in streamlined refinance programs, including HARP, will be eligible for relief after an acceptable payment history of only 12 months following the acquisition date.
Freddie and Fannie will evaluate loans within consistent timelines and promise a more transparent appeals process for lenders to appeal repurchases requests, DeMarco said. The changes will result in better quality originations and underwriting which will ultimately protect the enterprises from substandard loans and future losses, he said.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
