As time-sensitive purchase mortgages gain market share — and repurchases have waned — these tools provide the added benefit of making originations more efficient. Plus, differences in approach have created new competition between the GSEs.
From vendor choice to valuations, here's a look at the key differences between Fannie and Freddie's upfront rep and warrant relief strategies.
Speed to market
Employment verification
Appraisal alternatives
Fannie's appraisal alternative is available for refinance loans. Freddie has rolled out an appraisal alternative for refi loans, and is working with its regulator to roll out an alternative for purchases.
Vendor management
Freddie is "working actively with multiple vendors" on its income and asset offerings, according to Andy Higginbotham, Freddie's senior vice president of single-family strategic delivery.