In defending the bright-line test, the Mortgage Bankers Association has issued a written rebuttal to recent claims by opponents, including Freddie Mac, that the test would force Fannie Mae and Freddie to shut down their automated underwriting systems."In a recent paper distributed on Capitol Hill without attribution, Freddie Mac asserts that the bright line would 'preclude' the use of GSE AU systems. It would not," the MBA paper says. "It would merely introduce competition and transparency into the loan underwriting technology market." The MBA's goal is to promote competition by getting the two government-sponsored enterprises to license and accept loans from AU systems that are owned and operated by lenders and vendors, according to the MBA's top lobbyist, Kurt Pfotenhauer. The MBA points out in the paper that Fannie will accept loans underwritten by Freddie's Loan Prospector and Freddie will buy loans underwritten by Fannie's Desktop Underwriter. However, the two GSEs do not accept loans from other AU systems on the same terms.

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