Fannie Mae reached agreements with its nine mortgage insurers to allow short sales and deed-in-lieu to be processed more efficiently. The agreements will also speed up the foreclosure prevention process.
The new Federal Housing Finance Agency short sale guides for both Fannie Mae and Freddie Mac will go into effect Nov. 1. The Fannie Mae announcement shows mortgage insurers are on board with the changes.
HousingWire hosted a short sale guidelines webinar, which featured senior servicing policy analyst Ryan McGuinness of Freddie Mac and operations policy director Simone Beaty of the GSE. Both discussed what services and borrowers could expect when the short sale guidelines go into effect.
The agreements will provide a more consistent and efficient approval process with servicers and borrowers. Servicers can now approve any short sales or deed-in-lieu without individual mortgage insurance approval as long as it meets Fannie Mae’s requirements.
Through the first six months of the year, Fannie Mae completed 142,987 loan workout solutions, including 46,226 short sales and 7,509 deeds-in-lieu.
Fannie Mae senior vice president Leslie Peeler said short sales and deeds-in-lieu are essential tools to prevent foreclosures and also assist borrowers.
“These delegation agreements create an even more streamlined process that will ultimately help more families avoid the costly effects of foreclosure and benefit taxpayers,” she said. “We are pleased that the mortgage insurance companies have stepped up to the plate with us to help more homeowners.”
Those insurance companies include: CMG Mortgage Insurance Company, Essen Guaranty, Mortgage Guaranty Insurance Corp (MGIC), Genworth Mortgage Insurance (GNW), PMI Mortgage Insurance, Radian Guaranty (RDN), Republic Mortgage Insurance Company, Triad Guaranty Insurance Corporation, and United Guaranty Mortgage Insurance Company.