New Initiative for the Mortgage Origination Process

 

Fannie Mae has announced a new initiative to streamline the mortgage origination process for lenders and homebuyers. Single-family lenders can use a single 12-month verification report in the Desktop Underwriter validation services that will support lenders and help expand opportunities for buyers seeking homeownership. The streamlined process enables improved loan control quality, more efficient methods, and more ways to save money down the line.

Improved Loan Control Quality

  • This latest solution helps with validating the homebuyer’s income and employment as well as their assets all in one step. 

  • In this report, it is used to identify and consider the applicant’s positive rent payment and cash flow history. This may benefit the qualified borrowers who have limited or no credit history. 

  • It helps the application process to go more smoothly when reviewing the applicant's qualifications without running their credit.  

Efficiency Methods

  • This initiative is focused on making the process faster when it comes to mortgage finance experiences and helps lenders to assist homeowners more quickly and productively.  

  • The new update in the Desktop Underwriter removes the big steps in the loan application process and creates a more efficient process for lenders and borrowers. 

  • Now, lenders can offer a better homebuyer experience by reducing the paperwork burden. 

    This may even lead to an increase in the number of homebuyers who receive an approved or eligible recommendation through Desktop Underwriter (DU).

Saves Money Down the Line

  • It uses data from third-party vendors and reduces third-party report expenses as well as staff time which will speed up the process and help to streamline the process. 

  • The “clear to close” process is now faster and by using this down payment assistance tool, it assists those homebuyers find down payment and closing cost assistance. 

  • This may even increase loan quality and reduce repurchase risk.

Fannie Mae is committed to expanding these opportunities for those who are ready to purchase a home and maintain a mortgage. Realtors® can offer these capabilities and other products and resources now to better help homebuyers achieve their goal of purchasing their dream home faster and more efficiently.

By BeachesMLS Staff
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Anthony AcevedoCommunity