Fannie Mae Buyback Claims Rise
Fannie Mae, in a quarterly filing, says it is receiving "higher amounts" from lenders on loan repurchase requests while its pipeline of buyback claims on defaulted mortgages expands.
The government-sponsored enterprise reports that in the second quarter, lenders satisfied its requests for repurchases on loans with an unpaid principal balance of $3.3 billion. That was almost triple that of the first quarter.
Fannie said in the Securities and Exchange Commission filing that its outstanding repurchase requests totaled $9.6 billion at June 30, up $1 billion from the end of the first quarter.
The GSE also has $4.4 billion in outstanding repurchase requests with private mortgage insurers.
"We received proceeds under our primary and pool mortgage insurance policies for single-family of $1.5 billion for the second quarter," the SEC filing says.
Fannie said that the insurers' have rescinded mortgage insurance coverage on $534 million of the $4.4 billion in outstanding repurchasing requests. Now Fannie is going back to the original seller/servicers. If "a mortgage insurer rescinds insurance coverage, the initial receivable becomes due from the mortgage seller/servicer," Fannie says.