A policy that allows seller-servicers more time to meet a repurchase demands has been extended by the Federal National Mortgage Association.
Announcement SVC-2011 issued by Fannie Mae in June 2011 extended the amount of time that lenders have to respond to repurchase demands from one month to 90 days.
The temporary policy was scheduled to remain in effect until the end of next month.
But in Servicing Guide Announcement SVC-2012-09 issued today by the secondary lender, the deadline was extended until Dec. 31, 2012.
The temporary accommodations are subject to review and adjustment at any time at the sole discretion of the Washington, D.C.-based company.
Fannie is allowing the longer time frame as a result of “recognition of current and unprecedented market conditions.”
Mortgages that are four or more consecutive months past due can be repurchased from the mortgage-backed securities pool. The expanded turnaround doesn’t apply if the loan is left in the MBS pool.
Related:
Fannie Triples Repurchase Response Time
Fannie Mae has tripled the amount of time that sellers have to appeal repurchase demands.
