![]() There may be times when the determination If the significant defect has been corrected. In the event that the Lender Contract does not specify the time frame and manner requiredįor the correction of a particular significant defect, Fannie Mae shall determine Is subject to the same standard of quality control review as the initial mortgage Any additional documentation or information that the lender provides Of any significant defect in the specified time frame and in the manner required by Step 2-Correcting Certain Significant Defectsĭuring the appeal and impasse processes, a lender has the right to provide a correction Of the mortgage loan or may offer the lender a repurchase alternative. If Fannie Mae identifies a significant defect, Fannie Mae will require repurchase Had the true and accurate facts about the mortgage loan been known at the time ofįannie Mae may not demand repurchase of a PAL and the lender may not voluntarily repurchase LLPA that should have been paid when the mortgage loan was purchased by Fannie Mae If Fannie Mae designates a defect as resulting in a PAL, the lender must pay the applicable If Fannie Mae designates a defect as a finding, a correction or remedy will not be Of a full-file quality control review) that may result in the assessment of an LLPA. Note: Fannie Mae also checks mortgage loans for data discrepancies (which could be independent To correct a violation of Fannie Mae’s Charter requirements.Īnother example of a correction is the acquisition of required insurance. When the correction would result in a specific required minimum borrower contribution However, a “de minimis correction” cannot be made ![]() That, when remitted, refunded, or otherwise provided, corrects or otherwise resolvesĪn identified significant defect. Not to exceed $500 (or such higher amount as the lender and Fannie Mae may agree) One example of a correction is a “de minimis correction,” which is a minor amount That the defect is no longer considered by Fannie Mae to be a significant defect. Has been corrected in the time frame and manner specified in the Lender Contract such ![]() Or information to Fannie Mae) that demonstrates that a significant defectĭid not, in fact, exist at the time of loan purchase or securitization or (SeeĪ2-3.2-03, Remedies Framework, for additional information.)Ī “correction” is an action taken by a lender (typically through delivery of documentation To the Lender Contract in effect at the time of loan purchase. The actions that constitute a remedy or a correction for loans covered by the remediesĪ “remedy” is an action elected by Fannie Mae to resolve a significant defect pursuant
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