Fannie Changes REO Reimbursement Demands

To expedite sales of foreclosed properties, Fannie Mae says it will accept a buyer's purchase offer without notifying the servicer and before it determines whether the lender has to reimburse the secondary market agency for any losses. According to a December 24 servicing guide, Fannie Mae will accept a purchase offer "whether or not" the mortgage quality assurance review has been completed. "If, after completion of the review, Fannie Mae determines that the mortgage loan did not meet its eligibility or underwriting requirements and Fannie Mae has incurred a loss by selling the property, the lender will be required to fully reimburse Fannie Mae for its loss," according to Fannie Announcement 09-38. During the first three quarters of 2009, Fannie has taken control of 98,400 single-family or real estate owned properties and sold 89,700 REOs.