Lending Leaders: Fannie Mae mitigates lender pain points with Day 1 Certainty

Program provides freedom from reps and warranties on key parts of the mortgage process



Fannie Mae is making the loan origination process simpler and more efficient for lenders and consumers through its Day 1 Certainty initiative, which automates manual processes to reduce risk and complexity.

“The great thing about Day 1 Certainty is that it mitigates some long-time lender pain points,” said Andrew Bon Salle, executive vice president of single-family business at Fannie Mae. “We’re enabling a more accurate, simpler digital process. Lenders and borrowers benefit by moving away from the manual processes prevalent in the industry today.”

Day 1 Certainty starts with validating borrower income, assets and employment through the Desktop Underwriter (DU) validation service. Lenders choose third-party data vendors to validate the borrower information and Fannie Mae accepts the vendor data and DU calculations as acceptable documentation, giving the lender certainty right away. 

Lenders who were early adopters of the DU validation service found that it had multiple benefits, including shortening loan origination timelines by four to seven days, on average. One large nationwide lender recently reported significant efficiency gains: The average number of days from loan application to close was reduced by 50%. 

“Day 1 Certainty gives our lenders freedom from representations and warranties on key aspects of the mortgage origination process,” Bon Salle said. “And Day 1 Certainty reduces the burden of documents — paystubs, W-2s, or bank statements — that can be a headache for loan applicants and lenders alike.”

Day 1 Certainty also provides appraisal-related benefits powered by Collateral Underwriter (CU) – the industry’s leading appraisal risk assessment tool. First, lenders get freedom from reps and warrants on property value with a CU risk score of 2.5 or lower on the appraisal – which Fannie Mae is seeing on more than 60% of appraisals submitted to them. In addition, about 20% of limited cash-out refinance loans underwritten through DU get an offer to waive the appraisal thanks to CU’s analysis. 

“The mortgage loan business is long overdue for technology to help drive efficiency. We at Fannie Mae have been working hard to achieve that vision, but we have not done it alone. We give credit to the entire housing finance industry for implementing data standardization that laid the foundation for technology innovation,” Bon Salle said.

“As industry participants continue to work together toward that goal, we remain committed to simplicity, innovation, and providing great customer service and certainty of sale. This is driving our work. And for all participants, it is reshaping the housing finance industry we know today.”


CasonHenry Cason, SVP and Head of Digital Products

Henry Cason oversees the design, development and launch of a digital suite of products and services across the single-family residential mortgage loan life cycle. He is responsible for fostering integration of Fannie Mae’s technology and business infrastructure with that of its customers – to help customers grow and create value in the market place. 

Cason integrates technology product development across single-family business in mortgage origination and underwriting, loan acquisitions, conduit and capital markets business, and servicing and asset management portfolios. He aligns IT and business priorities, and leads digital transformation of Fannie Mae’s offerings in the market place. 

Bon SalleAndrew Bon Salle, EVP Single-Family Business

Andrew Bon Salle is responsible for all aspects of Fannie Mae’s single-family business, including engagement with customers, managing the performance of the credit portfolio, and overseeing all capital markets activities. 

Bon Salle also leads the company’s efforts to integrate with the common securitization platform. Most recently, Bon Salle served as Fannie Mae's senior vice president and head of underwriting and pricing and capital markets, overseeing the company’s credit risk management and pricing strategies to maximize the profitability of the single-family credit book throughout different economic cycles.

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