Mortgage Seller's Guide to Agency Application

Roughly 90 percent of new originations end up with either Fannie Mae, Freddie Mac or Ginnie Mae. While the agency dominance is nothing new, thereís been a noticeable decline in the role of the nationís megabanks. Bank of America, JPMorgan Chase, Wells Fargo and others have exited the broker/wholesale channel entirely. Some large lenders, including PHH and Citigroup, have also cut back on their correspondent purchases.

The big banksí shift away from aggregating mortgages to sell to the agencies has also opened the door to many nonbanks, smaller lenders and community banks to sell directly to the agencies Ė as long as they have approval. Some suggest that selling directly to the agencies offers other advantages, including a better return than the servicing-released premium being offered by correspondent buyers.

The increase in new direct sellers has led the GSEs and Ginnie to tweak their seller/servicer requirements. Fannie and Freddie in particular have put certain restrictions on relatively new players. Some of the requirements are tied to net worth and how much volume lenders can deliver to the agencies.

In a new Mortgage Sellerís Guide to Agency Application, Inside Mortgage Finance looks at all aspects of the process to apply to sell mortgages to Fannie and Freddie, become an FHA-approved lender and participate in Ginnieís MBS programs. For each of the programs, youíll learn whatís required in terms of:

  • Eligibility,

  • Net-worth and other financial measurements,

  • Servicing and subservicing,

  • Fees,

  • Quality control,

  • Necessary paperwork,

  • Insurance.

Youíll also know what the application steps are for each agency, how long the process should take, what might slip you up or slow you down, and how best to set yourself up for success. The guide also covers the use of consultants and changes and potential changes to net-worth requirements and volume caps.

Join the lenders who are selling directly to the agencies, including more than 1,600 lenders who sold to Fannie and Freddie last quarter. Order your Mortgage Sellerís Guide to Agency Application today to get started.

Print edition with shipping in the U.S. - $399.00
Print edition with shipping outside the U.S. - $449.00
PDF Format - $399.00

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With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.
Yes, by a lot.
Yes and, heck, we may even do non-QM lending.
No, not at all.
No and we may even tighten credit.

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