Mortgage bankers that utilize the Federal National Mortgage Association’s Day 1 Certainty can cut there turnaround by as much as a third.
The Washington-based secondary lender reports that its Day 1 Certainty, which helps lenders avoid repurchases, reduces the time it takes to close a loan.
According to Fannie Mae, hundreds of home lenders are benefiting from improved process efficiencies and reduced loan origination cycle times.
For instance, Fannie says that when assets are verified through its automated underwriting system, Desktop Underwriter, the average reduction in the time from application to closing is 14 percent.
When employment or income are validated through DU, the reduction in turnaround is 17 percent.
Even more impressive is an average 38 percent shorter cycle time for loans
with exercised property inspection waivers.
“Day 1 Certainty gives lenders freedom from representations and warranties plus greater speed and simplicity, and enables an improved borrower experience,” Fannie says on its website.
Details about Day 1 Certainty are online at
www.fanniemae.com/singlefamily/day-1-certainty#.
