Fannie Mae recently told its seller/servicers that all mortgage insurance rescissions, cancellations and claim denials tied to loans it bought must be reported to the agency immediately.
The edict became effective October 1, and was mentioned in a recent Securities and Exchange Commission filing by Bank of America, one of the GSE’s largest/seller servicers.
B of A notes in the filing that Fannie’s announcement confirms the GSE’s view that an MI company’s rescission or cancellation or claim denial “constitutes” a breach of a seller/servicer’s representations and warranties which would trigger a buyback claim.
Fannie told its mortgage banking customers that it doesn’t matter whether the lender is contesting the MI rescission.
Over the past three years Fannie and its sister company, Freddie Mac, have instituted billions of dollars worth of buyback claims against B of A, Wells Fargo, JPMorgan Chase, and other top originators.
The GSE — a ward of the Federal Housing Finance Agency — also recently instituted a ban on bulk settlements with MIs that provide for loss sharing in lieu of rescission.
Daily Briefing | Friday, December 9, 2011
Another Increase in Market Share for Loan Brokers
Perhaps the future for loan brokers isn’t so bleak after all. Wholesale lenders table funded almost $33 billion of loans in the third quarter, giving the channel a 9.2% market share, according to new figures compiled by National Mortgage News and the Quarterly Data Report.
KBW: Treasury Can’t Stop Mortgage Rates from Rising in 2012
Even with the housing market stabilizing and a settlement between megaservicers and state AGs on the horizon, the mortgage industry shouldn’t expect an increase in originations next year, according to a new forecast from Keefe, Bruyette Woods.
Arch Bay Tests Use of Borrower Rewards
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Warehouse Commitments at MetLife Bank Top $900 Million
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Former Production Chief at Union Launches Consulting Firm
Craig Cole, a former mortgage production chief who recently retired from Union Bank, San Francisco, has launched a new consulting firm to advise clients on their jumbo lending and execution strategies.
Friday Deadline for MISMO Leadership Nominations
The deadline to nominate industry professionals to serve on MISMO’s residential governance committee is today.
Isakson Bill Would Liquidate Fannie and Freddie, Create New Agency
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In War Over CFPB, Democrats Jockey for Political Advantage
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