NEW YORK (Reuters) - Fannie Mae said on Monday it has launched a program to streamline its underwriting on mortgages for some borrowers that uses electronic data instead of physical proof of their income, assets and employment.
The U.S. government mortgage agency said the “Day 1 Certainty” program would also offer relief from representation and warranty for the appraised value of a home and a waiver of its property inspection requirement for many mortgage refinancings.
“Together, these innovations deliver greater speed, simplicity, and certainty to lenders and borrowers. They also bring stronger risk management and promote greater digitization of data and processes to the mortgage industry,” said Timothy Mayopoulos, Fannie Mae’s president and chief executive officer, in a statement.
These program features will be available on Dec. 10, Fannie Mae said.
Fannie Mae and Freddie Mac finance mortgages made by lenders by owning them and guaranteeing the bonds backed by these loans.
Reporting by Richard Leong; Editing by Meredith Mazzilli