Fannie Mae just eliminated fees on its Desktop Underwriter mortgage underwriting system and Desktop Originator tool, the company said in an email.
Fannie will also introduce a new loan delivery system, the government-sponsored enterprise said, without going into specifics.
“We want to continue to provide value to our lenders and we don’t want technology fees to get in the way of lenders using our technology to its full potential," said Andrew Bon Salle, executive vice president, single-family business at Fannie Mae.
The company also announced the following details:
1. Enhanced EarlyCheck
This fall, Fannie Mae will update its EarlyCheck application with additional loan-level data integrity capabilities, to help lenders have confidence that the loans they deliver to Fannie Mae have accurate, complete data and meet Fannie Mae’s requirements. These updates will align with the data standards in Fannie Mae’s Loan Delivery tool, meaning lenders can have more confidence that loans can be delivered to Fannie Mae prior to doing so. Over time, Fannie Mae will continue to update EarlyCheck with additional capabilities, including loan eligibility rules, so that lenders have additional certainty that the mortgages they deliver meet Fannie Mae’s standards.
2. DU fees eliminated
Fannie Mae currently offers Collateral Underwriter and EarlyCheck to lenders at no charge to encourage lender use and drive industry-wide collateral and data quality. Effective immediately, Fannie Mae will offer Desktop Underwriter and Desktop Originator on a no-fee basis, as well. Fannie Mae is removing these fees to allow more lenders to access the value of DU in their underwriting processes and to enable the company to continue to bring innovative solutions to the mortgage process, driving certainty, loan quality and greater efficiency.
3. A new loan delivery interface
Fannie Mae is currently developing a new platform for lenders to deliver loans. This new platform is designed to provide lenders with a more intuitive and easier-to-navigate user interface, enhanced reporting capabilities, and improved delivery edit messaging that will help lenders deliver loans more efficiently and with greater transparency and certainty. The new loan delivery system is expected to be available to lenders in late 2015, and Fannie Mae will provide guidance to customers over the coming weeks.
This marks the second time in a month that a government-sponsored enterprise cut a lender fee. In May, Freddie Mac announced that it will no longer charge lenders $20 to use its automated underwriting service, Loan Prospector, in order to make doing business together simpler. Loan Prospector is a risk-assessment tool that gives lenders ready access to Freddie Mac’s credit and pricing terms.
Brad German, a spokesperson for Freddie Mac, said that the change was spurred by the awareness of the cost its customers are dealing with. Freddie made a decision to make an investment in its customers, which in turn, will enable them to help more borrowers and improve liquidity in the marketplace.