New Fannie, Freddie Rep & Warrant Framework Favorably Received
November 26, 2014
Both Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency, last week rolled out changes to their selling representation-and-warranty frameworks in an effort to reduce lenders’ concerns about when they might be asked to repurchase a loan. The GSEs noted that some lenders were concerned about repurchase risk and other market factors causing an increase in credit overlays, which has limited access to credit for potential creditworthy borrowers.