Fannie Mae And Freddie Mac Use New Program
June 4, 2010
A new initiative that will encourage lending companies to submit appraisals and loan delivery information electronically has been started by federal regulators in charge of Fannie Mae and Freddie Mac. The new program will require both Fannie and Freddie to use the same data standards, data collection processes, and file formats.
This new standard will improve the consistency as well as the quality of information for not only appraisals but also other loan data. The will improve the power of collateral, borrower and loan data submitted to both companies.
The Uniform Mortgage Data Program is a long-term, joint effort to generate improved and consistent data standards and collection processes. Fannie and Freddie have worked with industry members in order to develop the uniform standards.
Edward J. De Marco the FHFA Acting Director stated, “FHFA directed the Enterprises to undertake the development of the standards to provide greater uniformity in the data they collect, and” …“This initiative is a major step toward meeting industry requests for uniformity in appraisal and loan data. Improvements in data quality will benefit all mortgage market participants and strengthen the housing finance system.”
The new framework will help to increase efficiency for lending companies while at the same time allow Fannie and Freddie to be better able to manage risk in a more effective manner. The data standards will give uniformity for appraisers, mortgage lenders, and services along with other information providers in their data submissions to both Fannie and Freddie. This data standards program will be launched in phases through a consistent platform and does provide stakeholder input.
Under the new standards, data submitted to Fannie Mae and Freddie Mac on loans sold to or guaranteed by either will include more complete and consistent data including “loan characteristics; borrower information; the property securing the loans; and, the identity of the parties creating the transaction.”
DeMarco explained, “Fannie Mae and Freddie Mac will continue their own proprietary reviews of appraisal and loan information, using their own unique business models and policies,”…”However, we asked the Enterprises (Fannie Mae & Freddie Mac) to work together to implement a common data protocol that will ultimately benefit borrowers, lenders and other market participants. Common data definitions, electronic data capture, and standardized data protocols will improve efficiency, lower costs and enhance risk monitoring. The uniform system includes protocols for incorporating new technologies and to meet new legal requirements
3 Comments to Fannie Mae And Freddie Mac Use New Program
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Hopefully that will help the process go a bit smoother.
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I’ve submitted paperwork to the bank in the past for short sales and found that the banks have a difficult time keeping track of all the paperwork that lands on their desks. Having it all filed away electronically to be re-checked, re-reprinted and utilized appropriately is very important. I’m surprised they didn’t require electronic uploading sooner when it comes to short sale paperwork.
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