Fannie Mae Announces Improvements to Repurchase Policies
Additional Clarity and Certainty Intended to Help Lenders Expand Access to Credit
WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced updates to its repurchase practices and procedures that are intended to provide additional certainty and clarity to lenders and encourage greater access to mortgages for creditworthy borrowers. The announcement provides a list of potential alternatives to repurchase that Fannie Mae could offer in the event of underwriting defects. In addition, Fannie Mae is providing specific guidance on what kinds of loan defects could lead to a repurchase request or an alternative remedy. Today’s announcement is based on feedback from a working group of lenders.
“Lenders consistently tell us that concerns about repurchases limit their willingness to lend, so we’re trying to put those concerns to rest,” said Andrew Bon Salle, Executive Vice President, Single-Family Business at Fannie Mae. “By pursuing repurchase alternatives and providing clarity on significant defects we aim to help lenders serve the market confidently, efficiently and profitably. Today’s guidance is another milestone in our efforts to provide more clarity and certainty to our customers.”
The guidance provided today can be found in a Selling Guide announcement available here, and will be effective for loans delivered to Fannie Mae beginning January 1, 2016.
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