In some cases, Fannie Mae will acquire loans that have been repurchased by the seller.
The secondary market lender outlined its requirements in Announcement SEL-2010-10.
Fannie said it will allow re-delivery of mortgages that have been repurchased by the lender.
In order to qualify, the condition that made the loan ineligible must have been corrected, and the loan must qualify under the Washington, D.C.-based firm’s current underwriting standards.
Additionally, it must have been Fannie that issued the repurchase demand.
“A mortgage loan that was required to be repurchased by a secondary market investor, government sponsored enterprise or private institutional investor other than Fannie Mae is not eligible for delivery,” the letter said. “These types of mortgage loans are not eligible for delivery to Fannie Mae even if the identified defect has been cured by the lender and may otherwise meet Fannie Mae requirements.”
However, loans repurchased from another investor are eligible for delivery to Fannie as long as the mortgage “was delivered in error.”
