In a bid to help lenders make a decision on loan, Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) has integrated its Collateral Underwriter with that of Desktop Underwriter and EarlyCheck. By such integration, the government-backed housing entity will assist lenders to effectively manage and underwrite loans on the basis of risk.
Boosting tools for lenders
It should be noted that Collateral Underwriter is the company’s proprietary appraisal analysis tool, which gives lenders access to public record, analytics and other data that is helpful in evaluating risk on an appraisal.
The measure comes on the heels of Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA)’s announcement in last October, when it had equipped the lenders with Collateral Underwriter in order to ensure that the loans met the housing entity’s standards. The company aimed at reducing the repurchase risk through such measure. Now, the integration will display the risk score, messages and flags pertaining to an appraisal that are submitted to the company’s Collateral Underwriter in DU and EarlyCheck.
Minimize repurchase risk
As a result of this integration, lenders will get a holistic view of risk attached to a loan across the applications, which will boost their decision-making ability. The lenders will be able to resolve issues even before loan delivery, according to Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA).
The company’s Senior Vice President for Single Family Business Capabilities, Marianne Sullivan said that the Desktop Underwriter, Early Check, and Collateral Underwriter are foundation tools for a robust housing finance system. She said that the integration will enhance the lenders capabilities and minimize repurchase risk, which will help in building strong and profitable businesses.
The stock of Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) rose marginally by 0.71% to $2.84 during the previous trading session. A total of 5 million shares traded on the exchange during the said session.
