Good news for the mortgage lending world, we have an advocate in our marketplace who wants the same goals for our companies as we do! Who is this silent partner? It is none other than Fannie Mae! And they want to help us get more approved borrowers and reduced operations costs for our companies.
Fannie Mae has created a new program called “Fannie Mae Day One Certainty”, and this is another step moving us to the true digital mortgage age! They now allow (and prefer) new methods of getting the borrowers income and assets combined with new methods to approve value.
How does Fannie May Day One Certainty work?
The short story is Fannie Mae has created instant rep and warranty relief by validating components of the loan file. In other words fully approving up front before lenders sell them the loans. Below are the major components of the Day One Certainty Program we will be reviewing:
Property Value Using
- Enhanced Property Inspection Waivers
- Collateral Underwriter for greater certainty
Employment Verification Using
- Employment Validation Service
Lenders Income Figures Using
- Income Validation Service
Lenders Assets for Closing & Reserves Using
- Asset Validation Service
Over the last decade, the mortgage business experienced a major crash followed up by sweeping changes in regulations. This one-two punch combination has caused the cost to originate a loan to increase dramatically. Mortgage companies are still working hard to roll back to the costs levels found in 2008-2011 and keep their rates competitive. Lenders needs to address the following major categories to succeed to bring costs down, and the best news is Fannie Mae Day One Certainty helps tremendously with both problems.