Fannie Mae announced it has reached delegation agreements with nine mortgage insurers to enable servicers to complete short sales and deeds in lieu of foreclosures without seeking approval from the insurer. The move is expected to allow short sales and deeds-in-lieu to be completed more efficiently.
The agreements have been established with CMG Mortgage Insurance Company, Essent Guaranty Inc., Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance Co., Radian Guaranty Inc., Republic Mortgage Insurance Co., Triad Guaranty Insurance Corporation and United Guaranty Mortgage Insurance Co.
All delegation agreements were effective as of Nov. 1, 2012, according to Fannie Mae.
"Short sales and deeds-in-lieu are important tools to prevent foreclosures and help struggling borrowers," said Leslie Peeler, senior vice president, National Servicing Organization, at Fannie Mae. She added, "These delegation agreements create an even more streamlined process that will ultimately help more families avoid the costly effects of foreclosure and benefit taxpayers. We are pleased that the mortgage insurance [MI] companies have stepped up to the plate with us to help more homeowners."
Fannie Mae said that through the first six months of 2012, it had completed 46,226 short sales and 7,509 deeds in lieu of foreclosure.