Mortgage Insurers Give Fannie Mae Permission To Speed Up Short Sale Timelines

Fannie Mae has been given the authority to proceed with a short sale or complete a deed in lieu of foreclosure by five mortgage insurers, without needing to secure their approval.

The latest mortgage insurer to give Fannie Mae the authority to proceed without waiting is the PMI Group, which filed for bankruptcy last year.

PMI Group joins Genworth, Republic Mortgage Insurance Co., MGIC and Radian Guaranty in already granting authority to Fannie Mae. With less red tape to go through, Fannie Mae mortgage servicers should be able to step up the approval of short sales.

Buyers, Realtors, and mortgage bankers have all complained about the lengthy amount of time needed to complete a short sale. All of this fits with its wider plan to increase short sale completion rates and also boost the speed of the process. As part of these efforts, Fannie Mae has also distributed short sale processing software to numerous MLSs across the US.

Many in industry are happy about it, and wish it had happened years ago.