- The delegation agreements authorize Freddie Mac to approve short sales or deeds in lieu of foreclosure for distressed borrowers with Freddie Mac owned-or guaranteed mortgages without a separate and potentially time-consuming review by the mortgage insurance company. Freddie Mac will instruct its servicers to use the delegations to more quickly and efficiently help borrowers through the short sale process.
- The mortgage insurance companies who signed the delegation agreements with Freddie Mac are CMG Mortgage Insurance Company, Essent Guaranty, Inc., Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance Company, Radian Guaranty, Inc., Republic Mortgage Insurance Company, Triad Guaranty Insurance Corporation, and United Guaranty Corporation.
- Today's announcement builds on recent Freddie Mac efforts to encourage more short sales. On November 1, Freddie Mac's new Standard Short Sale will go into effect, streamlining the short sale approval process and broadening the ability of servicers to help distressed borrowers.
- Freddie Mac's Congressional charter requires private mortgage insurance if the borrower's downpayment is less than 20 percent of the value of the home they are financing
- The Freddie Mac Guide Bulletin announcing the changes can be found at http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1223.pdf
Freddie Mac, Mortgage Insurers Make Short Sales Easier To Process Starting November 1, 2012
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