What is representation and warranty relief?
Collateral Collateral representation and warranty relief provides immediate relief from representations and warranties related to the value of the mortgaged premises, as more specifically described in the Seller’s Purchase Documents.
What are reps and warranties mortgages?
Representations and Warranties are a lender’s assurance that a mortgage loan sold to Fannie Mae or Freddie Mac (the Enterprises) complies with the standards outlined in the Enterprise’s selling and servicing guides, including underwriting and documentation.
What regulates FHFA?
The Federal Housing Finance Agency (FHFA) is a U.S. regulatory agency that oversees the secondary mortgage market. The FHFA also regulates Fannie Mae and Freddie Mac, the two largest government-sponsored mortgage enterprises.
What is Fannie Mae rep and warrant?
A lender that acquires the servicing of a mortgage loan, either concurrently with or subsequent to Fannie Mae’s purchase of the mortgage loan, assumes and is responsible for the same selling warranties that the party responsible for the selling representations and warranties made when the mortgage loan was sold to …
What is the purpose of representations and warranties?
The representations and warranties allocate risk between the parties and serve as the foundation for an indemnification claim in case of a breach or inaccuracy. A breach or inaccuracy of a representation or warranty can also provide the other party with a right to terminate or refuse to close the transaction.
Why are reps and warranties important?
Reps and warranties also provide opportunities for either party to end the deal and walk away. They ensure that neither party takes on all of the risk of the purchase. And they motivate both parties to lay out the facts instead of glossing over them or misrepresenting their interests.
What is the role of the FHFA?
The Federal Housing Finance Agency (FHFA) was established by the Housing and Economic Recovery Act of 2008 (HERA) and is responsible for the effective supervision, regulation, and housing mission oversight of Fannie Mae, Freddie Mac (the Enterprises) and the Federal Home Loan Bank System, which includes the 11 Federal …
Is FHFA part of HUD?
FHFA is comprised of combined staffs of the former Office of Federal Housing Enterprise Oversight (OFHEO), the former Federal Housing Finance Board (FHFB), and the GSE mission office at the Department of Housing and Urban Development (HUD).
At what SSR rating Do you lose your FNMA reps and warrants?
Lenders get freedom from representations and warranties on property value with a Collateral Underwriter® (CU™) risk score of 2.5 or lower.
What is a SSR report?
“SSR” – Successful Submission Report Each SSR contains a summary of the appraisal submission(s) for a particular loan, the status of the submission(s), and a Document File Identifier (Doc File ID.)
What is the difference between representations and warranties?
A representation is an assertion as to a fact, true on the date the representation is made, that is given to induce another party to enter into a contract or take some other action. A warranty is a promise of indemnity if the assertion is false.
Are representations legally binding?
If a lender represents a certain state of affairs which is mutually accepted by a borrower, these conditions will be binding on both parties, regardless of the written terms of an agreement.