Fannie 'Early Funding' Program Had Big Numbers

Fannie Mae purchased $103 billion of single-family loans under an "early-funding" program launched last summer during the height of the warehouse lending crisis, according to new figures released by the GSE. Under the program, Fannie pays cash immediately after a loan funds at the closing table, allowing the originator to make more loans. Previously, lenders had to wait at least one month for a mortgage-backed securities transaction to settle. "We sped up access to funds so a lender receives quicker payments for loans exchanged for Fannie Mae MBS," said the GSE in a statement. Fannie intends to keep the early funding program going for the rest of 2010. Separately, the GSE last month unveiled a $1 billion warehouse lending pilot program to provide additional funding for non-bank residential lenders. Through Natty Mac of Florida it is now providing $50 million to $150 million for warehouse lines. This pilot is slated to end in December. Natty Mac is owned by Guggenheim Partners.