Fannie Mae-No Politics (FNMA)

[navycmdr]

Fannie Mae, Freddie Mac execs confront mortgage repurchase issues

Underwriters fail to do their JOB then they CRY to have to take their garbage loans back !

By Bonnie Sinnock - May 24, 2023, 6:49 a.m. EDT



Executives from two government-sponsored enterprises acknowledged lender gripes about
loan putbacks at the Mortgage Bankers Association's secondary market conference on
Tuesday while standing firm on how they've been handling them.

"It's a mutual responsibility of the industry to manage our risk," said Kevin Kauffman,
Freddie Mac's senior vice president of customer engagement, when asked about the
repurchases the GSEs direct a lender to absorb in some cases when they
discover origination defects.

Some lenders have asked whether Fannie and Freddie could cut them on a break on
all performing loans with flaws and allow them to indemnify the mortgages instead of
potentially absorbing a loss due to the need to sell mortgages at discounts in the
scratch-and-dent market.