Hi, I’m Adam DeSanctis, this is the Mortgage Minute, the latest news from the Mortgage Bankers Association. Last week, Fannie Mae released a selling guide announcement that features several key policy enhancements that address longstanding MBA and lender concerns. First, desktop underwriter approved loans will now receive rep and warranty relief related to undisclosed non-mortgage debt if certain criteria are met providing lenders with much needed confidence in reducing buyback risk. Second for single closed construction to permanent loans. Credit documents are now valid for up to 18 months at the time of modification or conversion. This change helps lenders and borrowers avoid costly requalification delays during construction. And finally, third, desktop underwriter will no longer apply a minimum credit score requirement. Instead, relying on a more holistic assessment of borrower risk, a step that could expand access to credit in underserved markets. MBA believes that these are common sense improvements that will help lenders better serve borrowers navigating the complexities of new home construction. We have advocated for these changes and we applaud Fannie Mae for listening to our members’ feedback. The updates to construction, to permanent loans that take effect immediately while the rep and warrant relief at desktop underwriter credit score changes become effective after November 15th, MBA will continue to work with Fannie Mae, Freddie Mac and FHFA to advance further reforms and promote consistency across the GSEs. That’s it for this week. Thank you for listening.
Adam DeSanctis, VP, Communications at Mortgage Bankers Association
As a strategic public affairs and communications executive with nearly two decades of experience, Adam has deep expertise in strategy, management, and media relations. He is widely regarded as an expert in a variety of communications, including advocacy, brand, executive, crisis, grassroots, and social media. In his career, he has been the MBA spokesperson on a wide variety of real estate research and advocacy-related issues, promoted MBA research and advocacy efforts to financial, political, and trade industry media and on MBA’s social media channels, and secured media opportunities for MBA leadership on key real estate trends and issues, generated media coverage for MBA’s research and data on mortgage applications, credit availability, homebuilder applications, mortgage forbearance/delinquencies, commercial real estate originations, and forecasts, and other industry analysis, developed key strategic initiatives for MBA’s organizational public affairs plan, media relations and member communications support for mPower, MBA’s Opens Doors Foundation and MBA’s Diversity, Equity, and Inclusion programs.