October 19, 2015Fannie Mae Announces Innovations for Lenders, Borrowers
WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced a series of innovations to bring more certainty and simplicity to lenders, employ stronger data capabilities, and help borrowers have access to sustainable mortgage credit. In addition, Fannie Mae previously announced plans to reduce lenders’ costs and enhance the company’s technology platform, including new capabilities for the EarlyCheck™ loan quality system and a new loan delivery tool. Fannie Mae will continue to build new tools and improve existing offerings to serve the needs of lenders and help build a more sustainable housing finance system.
“Fannie Mae wants to be the partner of choice for lenders,” said Timothy J. Mayopoulos, President and Chief Executive Officer, Fannie Mae. “Our aim is to help lenders serve their customers efficiently so that more qualified borrowers have access to mortgage credit. We are enhancing our offerings, improving our tools and innovating through the technology we provide to our customers. Our goal is to make sustainable homeownership a reality in communities across the country while reducing risk for taxpayers.”
Today, the company announced the following innovations:
Earlier this year, Fannie Mae’s suite of risk management tools was integrated to help lenders underwrite and deliver quality loans with greater certainty and transparency:
In addition to today’s announcement, Fannie Mae continues to work to transfer credit risk, reducing the potential for losses and bringing private capital into the market. By the end of 2015, Fannie Mae anticipates it will have transferred a portion of the credit risk on approximately half a trillion dollars in single-family mortgages. In addition, Fannie Mae is testing a variety of credit risk transfer mechanisms, completing a series of transactions with reinsurers and building the first actual-loss transaction under its Connecticut Avenue Securities series.
“Increasingly we are transitioning from a credit risk storage company, to a holder and mover of a portion of that risk,” Mayopoulos said.