twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/

Mortgage Insurance News | M.I. Directory | M.I. Statistics
News about mortgage insurance issuance, defaults and litigation
.


www.mortgagebranchmanagerjobs.com
M.I. Requirements Revised by Fannie

Announcement SVC-2011-12 outlines requirements on loans missing coverage

July 1, 2011

By MortgageDaily.com staff


A number of changes to mortgage insurance requirements were outlined by the Federal National Mortgage Association.

Sellers are required to obtain mortgage insurance policies on loans before delivery to the secondary lender if the mortgage has a loan-to-value ratio in excess of 80 percent.

In addition, servicers are required to keep the coverage in effect during the life of the loan unless Fannie Mae's conditions for canceling M.I. coverage are met.

The requirements were outlined in Announcement SVC-2011-12 issued Thursday by Fannie.

Lenders can only deliver high-LTV loans that are insurable.

Servicers are required to notify Fannie, on a monthly basis, of any mortgage insurance rescissions and mortgage insurer-initiated cancellations for active loans. They are also required to notify the secondary lender of M.I. rescissions, cancellations and claim denials on all liquidated mortgages including pre-foreclosure sales and real-estate-owned loans.

Servicers that chronically submit late reports or regularly fail to verify the accuracy of the reports are subject to compensatory fees or other remedies.

When M.I. coverage isn't in place, Fannie said that it could require that the seller repurchase the loan or remit a "make-whole" payment -- regardless if the lender is working to reinstate M.I. coverage.

However, lenders can secure a comparable replacement mortgage insurance policy at their own expense. They can also agree to repurchase the mortgage if it later becomes more than 120 days delinquent as long as they meet certain requirements.

But if the loan has been continuously delinquent for at least four consecutive months, then the lender must remove the loan from the MBS pool and repurchase it.

On loans that lost M.I. coverage before April 30, Fannie is requiring that the coverage must be resolved by Sept. 30. This can be done by getting coverage reinstated, submitting a "make-whole" payment or by repurchasing the loan.

But loans that lose coverage after April 30 are subject to the new rules.

Government-owned Ginnie Mae said in memorandum APM 11-11 that any pools or loan packages that haven't been certified after three years will need a letter of credit -- though such instruments don't substitute for mortgage insurance or guaranty. The policy was omitted from chapter 11 of Ginnie's guide.

Fannie Mae profile

next story

back to current headlines


GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.


Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.



Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders