Fannie Mae's proposal to allow lenders to use its patented mortgage origination process is acceptable to the GSE's regulator, but some industry groups claim it does not go far enough and there are problems with the licensing agreement.Consumer Mortgage Coalition executive director Anne Canfield called Fannie's proposal a good first step. "We appreciate the overture by Fannie Mae. However, it falls far short of a contribution to the public domain." Fannie has circulated an "open license agreement" that would allow lenders -- without paying fees or royalties -- to use its patented process for customizing mortgages to meet borrower's individual circumstances. The government-sponsored enterprise is hoping free access will calm industry concerns about the patent. A spokeswoman for Fannie's regulator said, "The Office of Federal Housing Enterprise Oversight believes this is a reasonable resolution of this issue." But CMC is concerned the licensing agreement "calls for very complicated arrangements that appear to deter usage." Nevertheless, the industry group is willing to work with Fannie. "We are hopeful that everyone can come to a mutual agreement on this very technical, but important issue, that will benefit industry and consumers alike," Ms. Canfield said.

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