Fannie Mae bans mortgage servicers from entering deals with insurers

04/18/2011 | Bloomberg

Fannie Mae has told mortgage servicers to stop entering indemnification or loss-sharing agreements with mortgage insurers in an effort to avoid having their policies overturned. The agreements "compromise mortgage insurance coverage" and are "generally inconsistent with protecting Fannie Mae's interests in mortgage loans," the government-sponsored enterprise said in a notice. Freddie Mac sent a similar warning earlier this month.

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