Breaking News! Federal Housing Finance Agency Director Mel Watt delivered some good news to the real estate finance industry and consumers, telling the Mortgage Bankers Association’s 101st Annual Convention & Expo that the agency will ease current credit rules, allowing more borrowers to qualify for mortgages. Watt said that FHFA, Fannie Mae and Freddie Mac, along with lenders, had reached an agreement to relax representations and warranties requirements for banks that sell loans to the government-sponsored enterprises. Watt said the agreement is intended to provide lenders with reassurances that they could sell loans to the GSEs without fear of uncertainty from potential losses and to encourage lenders to work more closely with Fannie Mae and Freddie Mac. Watt also confirmed that Fannie Mae and Freddie Mac would begin accepting loans with 3 percent down payments, less than current requirements. “These changes are a significant step forward that will result in a better representation and warranty framework, and facilitate market liquidity without compromising the safety and soundness of the Enterprises,” Watt said. MBA President and CEO David Stevens welcomed the announcement. “Director Watt’s comments represent significant progress in the ongoing dialogue among the industry, FHFA and the GSEs to address several issues that are causing the tight credit conditions that have prevented a more robust recovery in the housing sector,” he said. “Offering lenders better clarity around representation and warranty requirements will ensure lenders are accountable for any material mistakes they may make in the loan process, yet acknowledges the fact that minor, immaterial loan defects should not automatically trigger a repurchase request. As a result, lenders will be more confident in offering home loans to qualified borrowers within the full boundaries of the GSEs’ credit requirements. As always, contact me anytime for estimates, rate quotes and any marketing assistance. Warm regards, Description: Description: Description: image003.jpg@01CD02BEKim Jones-Zweig Senior Mortgage Banker Fidelity Bank Mortgage 3490 Piedmont Road, Suite 750 Atlanta, GA 30305 p: 678.468.4046 | f: 678.829.0612 e: kim.jones@lionbank w: kimdjones CLICK TO Apply Here! NMLS# 545217 FIND ME ON FACEBOOK: https://facebook/#!/KimJonesHomeLoans
Posted on: Tue, 28 Oct 2014 16:51:54 +0000
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