In late June, a top mortgage executive told HousingWire that the repurchase problem with Freddie Mac has accelerated 10x. Freddie Mac requests are up 100% month over month, indicating a significant strain on lenders as they grapple with the consequences of the GSE's policies. The executive underscores this with the sentiment that many are unsure how smaller correspondent lenders will survive given the current landscape.
Two mortgage executives have indicated that the predominant reason for repurchase requests relates to income verification. This issue is critical as it highlights one of the main challenges lenders face with Freddie Mac. Despite the uptick in requests and challenges, Freddie Mac announced initiatives aimed at improving communication and enhancing processes, suggesting their intention to address the financial pressure felt by lenders.
A Freddie Mac spokesperson noted in June that the agency takes industry feedback seriously, mentioning enhancements in communication and collaboration alongside specific feedback mechanisms to lenders. They emphasized ongoing adjustments in their internal processes to facilitate a smoother relationship with sellers, which reflects a commitment to resolving the growing frustrations expressed by the mortgage industry.
Freddie Mac's pilot program introduces a fee-based recovery alternative, launched late last year, which aims to mitigate the burden of loan repurchases on lenders. This program charges fees based on the quality control rates of lenders, trying to strike a balance between holding lenders accountable while offering a pathway to reduce overwhelming repurchase requests.
[
Collection
]
[
|
...
]