MORTGAGE
INSURERS JOIN
GSES IN EFFORT TO
SHORTEN SHORT
SALE PROCESS
Turning non-performing
assets into homes
Property Valuation & Analytics
Pre-Foreclosure Management
Short Sale Component Servicing
REO & Property Management
Providing REO, Valuation and Default Services since 1995
Fannie Mae and Freddie Mac servicers can
now skip a step when attempting to get a short
sale or deed-in-lieu of foreclosure approved.
The GSEs reached standard delegation
agreements with nine mortgage insurers,
allowing servicers to approve short sales and
deeds-in-lieu without a separate review and
authorization by the mortgage insurer.
Effective November 1, the agreements in place
should speed up the approval process for these
foreclosure alternatives. The short sale or deed-inlieu still must meet the GSEs' requirements, but
servicers don't have to wait for mortgage insurers
to offer their stamp of approval.
"Short sales and deeds-in-lieu are
important tools to prevent foreclosures and
help struggling borrowers," said Leslie Peeler,
SVP of Fannie Mae's National Servicing
Organization. "These delegation agreements
create an even more streamlined process
that will ultimately help more families avoid
the costly effects of foreclosure and benefit
taxpayers."
Tracy Mooney, SVP of servicing and
REO at Freddie Mac, added, "We applaud
the nation's mortgage insurers for committing
to work with us and our servicers to help
more borrowers obtain short sales and other
foreclosure alternatives."
Mortgage insurers that signed onto the
agreement include: CMG Mortgage Insurance
Company; Essent Guaranty, Inc.; Genworth
Mortgage Insurance Corporation; Mortgage
Guaranty Insurance Corporation; PMI
Mortgage Insurance Co.; Radian Guaranty Inc.;
Republic Mortgage Insurance Company; Triad
Guaranty Insurance Corporation; and United
Guaranty Mortgage Insurance Company.
The GSEs require mortgage insurance for
borrowers who make a down payment that is
less than 20 percent of the property value when
taking out a loan.
The announcement adds to Fannie Mae
and Freddie Mac's new standards for short
sales, which also took effect November 1.
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New estimates from the
International Monetary
Fund indicate the United
States faces a 15% chance of
recession in 2013.
