In Brief: Insurer Offers Access to Freddie, Fannie Systems

A leading mortgage insurance company is giving lenders access to the underwriting systems of the Federal National Mortgage Association and the rival Federal Home Loan Mortgage Corp. for a nominal fee.

The arrangement can save mortgage companies thousands of dollars in up- front costs for the systems, said Christopher Nard, vice president for corporate development at Republic Mortgage Insurance Co.

Republic plans to charge mortgage bankers a small fee for each loan application the system evaluates. But the real payoff for the company would come from mortgage insurance business the new service generates, the company indicated.

Five lenders have already signed up to use the underwriting system, Mr. Nard said.

Companies fax applications to Republic, whose underwriters put the data through the system and also verify applicants' income and assets.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER