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GSEs Cut Lenders a Big, Retroactive Break on Reps and Warrants

Fannie Mae
and Freddie Mac have nailed down the promised details the life-of-loan
exclusions
related to their representation and warranty framework.  Under the direction of the Federal Housing
Finance Agency (FHFA) the two government sponsored enterprises (GSEs) announced
the changes on Thursday afternoon. 

Press
releases from the two mortgage companies said the enhancements to the framework
are expected to help reduce lender concerns about when a GSE may demand a loan
be repurchased.  While the framework
provided relief as explained below there remained so-called “life of loan”
exclusions which permitted the GSEs to involve repurchase requests as long as
there was an unpaid balance on the loan.  

…(read more)

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