Fannie to Consider Retaining Loans with Defects–for a Price
National Mortgage News, Dec. 15, 2015–Berry, Kate
Fannie Mae will retain some home loans that have defects but are still considered to be within their risk appetite. Fannie’s so-called repurchase alternative would give mortgage lenders an exit strategy for some defective loans that fall short of Fannie’s guidelines but are still expected to perform well over their lifetimes. In the past year, Fannie has been testing options for alternatives by working with lenders and asking for their input. Fannie also got input from a lender working group with the Mortgage Bankers Association.
