Fannie Mae Aims to Provide Faster Funding

Due to the scarcity of warehouse lending, Fannie Mae is providing faster funding in mortgage-backed securities transactions so lenders can quickly turn around and make more loans. "We're providing faster funding to lenders so that they get cash immediately after closing to continue funding loans," Fannie president and chief executive Michael Williams said. "Previously, they had to wait a month or more for the MBS transaction to settle," he told the financial services executives and lobbyists at an Exchequer Club luncheon in Washington. In response to a question from one executive, the CEO indicated that Fannie is not interested in getting into the warehouse lending business. But Fannie has looked at ways to provide support for warehousing lending at the request of the GSE regulator and Treasury Department. "If asked, we will do it," Mr. Williams said.