Fannie Mae makes major announcement at MBA Annual Convention

October 24, 2016 | By

Fannie Mae President and CEO Timothy J. Mayopoulos today announced Day 1 Certainty™, an initiative to provide lenders with freedom from representations and warranties (R&W) on key aspects of the mortgage origination process.

Mayopoulos made the announcement during a general session, “A Conversation with GSE Leadership,” at the Mortgage Bankers Association (MBA) Annual Convention & Expo (Oct. 23-25) in Boston. The MBA is the national association representing the real estate finance industry. Its annual meeting offers educational sessions, exhibits, and networking opportunities. (View schedule)

“We come to this MBA Annual meeting focused on delivering a faster, simpler customer experience. We want to make the housing finance system stronger, and we’re very much changing the way we’re interacting with you, our customers,” Mayopoulos told attendees.

“We’ve been listening to you…and continuously improving.”

Two years ago, he says, he told attendees how he intended to make Fannie Mae “America’s Most Valued Housing Partner.” Last year, he says, he outlined progress and goals to make the customer experience in working with Fannie Mae “simpler and more certain.”

“So, today, I’m really quite happy to announce that this goal of being a simpler, more certain customer experience is in fact a reality….Today, we’re delivering tangible solutions to meet the challenges of our customers,” he adds.

What is Day 1 Certainty?

Mayopoulos described three aspects to Day 1 Certainty.

First, Fannie Mae is offering income, assets, and employment validation services to lenders through its leading mortgage underwriting system, Desktop Underwriter® (DU®), he says.

Income validation is available beginning October 24, 2016.

“Starting right now, if you validate income through Desktop Underwriter, you can be certain from day 1 that we will not ask you to repurchase a loan because that income data is incorrect. That’s starting today,” Mayopoulos says.

Asset and employment validation will be available December 10, 2016, he notes. “So if you then use our tools to verify assets and employment, you’ll get freedom from representations and warranties on those as well.”

In addition, Fannie Mae will provide freedom from representations and warranties on appraised values through Collateral Underwriter® and expanded waivers of property inspection requirements on refinances.

“This Day 1 Certainty is a huge step forward for a positive, transformative mortgage origination process,” Mayopoulos says.

Crowd Reaction

Attendees reacted to his Day 1 Certainty announcement with spontaneous applause.

“I am very excited to see Fannie Mae’s proactive approach to expediting the mortgage process with the new Day 1 Certainty,” Matthew Lewis, vice president and mortgage production manager of Regions Mortgage, tells The Home Story. “It sounds like a very integrated approach to make the customer experience one that the consumer will enjoy, and the mortgage sales force will embrace.”

“If we can improve the process of closing a loan and the speed at which it can be done, the overall result should increase the efficiency for all departments from sales to servicing. I cannot wait to experience these changes firsthand,” says Lewis.

“These announced innovations on improving Day 1 Certainty will dramatically help both smaller lenders in the loan production process and our homebuyer customers gain access to credit,” adds Jim MacLeod, chief executive officer of Coastal States Bank. “Speaking as one community-based mortgage lender these tools will reduce complexity on the part of the lender and help borrowers move more smoothly through a very difficult mortgage approval process,” he says.

Mayopoulos promised Fannie Mae is continuing “to listen to our customers and partner with them to deliver innovative solutions that address the nation’s most important housing challenges.”

comments

COMMENTING POLICY

 

We appreciate and encourage lively discussions on our websites’ content. While we value openness and diverse points of view, all comments should be appropriate for people of all ages and backgrounds. We do not tolerate and will remove any comment that does not meet standards of decency and respect, including, but not limited to, posts that:

  • are indecent, hateful, obscene, defamatory, vulgar, threatening, libelous, profane, harassing, abusive, or otherwise inappropriate
  • contain terms that are offensive to any group based on gender, race, ethnicity, nationality, religion, or sexual orientation
  • promote or endorse a product, service, or vendor
  • are excessively repetitive, constitute “SPAM” or solicitation, or otherwise prevent a constructive dialogue for others
  • are factually erroneous or misleading
  • threaten the privacy rights of another person
  • infringe on intellectual property and proprietary rights of another, or the publication of which would violate the same
  • violate any laws or regulations

We reserve complete discretion to block or remove comments, or disable access privilege to users who do not comply with this policy. The fact that a comment is left on our website does not indicate Fannie Mae’s endorsement or support for the content of the comment.

Fannie Mae does not commit to reviewing all information and materials submitted by users of the website for consideration or publication by Fannie Mae (“User Generated Contents”). Personal information contained in User Generated Contents is subject to Fannie Mae’s Privacy Statement available here. Fannie Mae shall have otherwise no liability or obligation with respect to User Generated Contents and may freely copy, adapt, distribute, publish, or otherwise use User Generated Contents without any duty to account.

A Window Into Housing In America

Subscribe to our newsletter for each week's top stories. Enter your email address below to stay in the know.