GSEs, Mortgage Insurers Delegate Short Sale Authority to Servicers to Ease Process

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Posted To: MND NewsWire

Agreements were announced on Wednesday with nine private insurance carriers that will make foreclosure alternatives much quicker and easier for some Freddie Mac and Fannie Mae (the GSEs) borrowers to obtain. Servicers will no longer have to seek approval of private mortgage insurance (PMI) companies when borrowers with mortgages owned or guaranteed by either GSE and carrying PMI seek a short sale or permission to grant a deed in lieu of foreclosure. The agreements, which become effective on November 1, allow the GSEs to approve short sales and deeds in lieu on the insurers' behalf. The GSEs are, in turn, delegating these authorities to their servicers. The delegations will eliminate the separate review required by the mortgage insurers. Freddie Mac, in announcing the agreements said that this...(read more)

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