With Fannie Mae’s elimination of the fee for its automated underwriting system, both government-sponsored enterprises have now done away with the cost.
Fannie’s secondary cousin Freddie Mac eliminated the $20 fee for its Loan Prospector AUS earlier this month.
The move was reportedly made to reduce the industry cost of expanding mortgage credit.
Freddie estimated that it costs
somewhere between $80 to $100 — sometimes more — to pre-qualify a new customer, and the change is intended to give lenders more space to compete for new customers.
“We’re making it now because the lending industry is fully focused on implementing new regulatory requirements, managing costs, and still providing the best possible service to their community’s aspiring homeowners,” the June 1 notice stated.
On Tuesday,
Washington-based Fannie issued a statement indicating that it would eliminate the fee for its Desktop Underwriter AUS.
In addition, Fannie is getting rid of the fee for its Desktop Originator tool.
“For years, our technology tools have been the tools of choice for mortgage lenders across the industry,” Fannie Mae Executive Vice President Single-Family Business Andrew Bon Salle said in the statement. “We want to continue to provide value to our lenders and we don’t want technology fees to get in the way of lenders using our technology to its full potential.”
Fannie also noted that its EarlyCheck application will be updated this fall
with additional loan-level data integrity capabilities.
In addition, a new loan delivery platform is being developed by Fannie that promises sellers a more intuitive and easier-to-navigate user interface, enhanced reporting capabilities and improved delivery edit messaging.
The interface is expected to be available later this year. Fannie said it will be providing guidance in the coming weeks.
