In an effort to streamline the handling of defective loans, lenders have implemented a pilot program aimed at reducing the repurchase burden within the mortgage industry. Rather than forcing lenders to repurchase defective but performing loans within 36 months of origination, the program now allows lenders to pay a fee based on the defect rate of their loan deliveries to Freddie Mac.
Key points summarized:
– Pilot program in place to address defective loans in the mortgage industry
– Lenders no longer required to repurchase defective but performing loans within 36 months of origination
– Lenders now have the option to pay a fee based on the defect rate of their loan deliveries to Freddie Mac
– Program designed to reduce repurchase burden on lenders and streamline loan handling processes
You can read this full article at: https://www.housingwire.com/articles/fhfa-expands-fee-based-alternative-to-repurchase-loans-to-all-approved-lenders/(subscription required)
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