Fannie Mae mortgage servicers can complete short sales and deeds in lieu of foreclosure without getting separate approval from the now bankrupt mortgage insurer The PMI Group, a change that's expected to further reduce barriers to short sales.

A mortgage insurance company must give clearance before a short sale can be completed on property underlying a guaranteed loan.

Five mortgage insurers now give Fannie Mae blanket authority to clear any short sales on their behalf: Genworth ($9.17 1.13%), MGIC ($4.32 0.29%), Republic Mortgage Insurance Co. ($10.38 0.14%), Radian Guaranty ($3.06 0.25%) and now PMI, which was seized by its regulator in August and filed for bankruptcy in November.
HW


What's your thoughts??

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@Eric.  I know that such delegated authorization agreements exist between GSE and MIs, and I always wondered what are the terms of those agreements.

Whatever that delegated authorization is, it cannot simply be that the MI waives their rights, without receiving compensation. Fannie must be stepping in, one way or another, eg by reducing their claim.

Anyone have any of these agreements?  Sure would like to read one.

Hi, Here is a link to the Fannie Mae website regarding MI. Thanks for the head's up! https://www.efanniemae.com/sf/servicing/fmmod/mi/index.jsp

I might be missing the point, but I'm ALL FOR THIS.  Thanks Eric.  I had NO idea.  This is going in my "favorites" threads collection.

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