Representations and Warranties Framework Updates

November 20, 2014

Today, Fannie Mae, jointly with Freddie Mac and at the direction of the Federal Housing Finance Agency (FHFA), issued Announcement SEL-2014-14 detailing enhancements to the selling representations and warranties framework introduced in Announcement SEL-2012-08 and updated earlier this year in Announcement SEL-2014-05. These enhancements include:

  • clarifications related to the framework’s life of loan representations and warranties for misstatements, misrepresentations, omissions, and data inaccuracies. These enhancements are effective retroactively for whole loans purchased and mortgage loans delivered into MBS with pool issue dates on or after January 1, 2013. However, these changes do not apply to any loans for which Fannie Mae has issued a repurchase request prior to November 20, 2014.
  • providing further transparency and certainty to lenders regarding when it will enforce remedies related to a lender’s compliance with federal, state, and local laws and limiting those situations for which it may enforce a repurchase. These enhancements are effective for mortgage loans acquired by Fannie Mae on and after November 20, 2014 and mortgage loans delivered into MBS with pool issue dates on or after December 1, 2014.

For a summary of the updates to the representations & warranty framework, including those addressed in SEL-2014-14, please review the representations & warranty summary.

For questions, investors may contact the Fannie Mae Fixed-Income Investor Helpline at 1-800-237-8627 or by e-mail.

Originally published: 11/20/14