Five mortgage insurers have granted Fannie Mae mortgage servicers the authority to complete a short sale or deeds in lieu of foreclosure without getting their separate approval, HousingWire reported.
Traditionally, mortgage insurance groups have had to give the OK before a short sale could be processed on a property with a guaranteed loan.
Now, without that extra step of mortgage insurers’ approval, Fannie mortgage servicers may be able to speed up short sale approvals on Fannie-backed loans.
The PMI Group, which filed for bankruptcy in November 2011, is the latest mortgage insurer to grant Fannie Mae the authority to no longer wait for its approval on short sales starting with February 2012.
The other four mortgage insurers that also gave Fannie Mae the authority are:
- Republic Mortgage Insurance Co.,
- Radian Guaranty.
Regardless, Fannie Mae has instructed its mortgage servicers to make sure a short sale does not conflict with any existing mortgage insurance coverage before approving it.