However, it calls on for better alignment from Fannie Mae and Freddie Mac
Mortgage Bankers Association (MBA), the association that represents the real estate finance industry, has applauded efforts by Fannie Mae and Freddie Mac to address requests for loan repurchases.
In a statement, MBA president and CEO Bob Broeksmit highlighted the development of effective alternatives for repurchase requests when there is a loan defect on performing loans that needs to be dealt with.
“We appreciate the effort Freddie Mac has put into its pilot program to rethink the process and lower the incidence of repurchases on performing loans – including for small lenders – as well as other steps it has taken to improve its Quality Control process,” said Broeksmit.
The chief executive also noted the reintroduction of the Notice of Potential Defect form by Fannie Mae, which followed a process similar to a method that was previously used.
“We appreciate this move, which aligns with MBA’s recommendations and will provide more time for lender feedback,” said Broeksmit.
He added, however, that Fannie Mae still had more work to do when it comes to improving the process of loan repurchasing, as well as in reducing or eliminating repurchases on performing loans - such as exploring the option of having a pilot program, similar to that run by Freddie Mac.
“We will remain engaged with the GSEs and FHFA to ensure high quality underwriting and an appropriate rep and warranty framework and appreciate their collaboration on this important issue for our members,” said Broeksmit.
Have something to say about this story? Let us know in the comments below.
