Posts by Michael Dawson
Mike Dawson is vice president of Single-Family Customer Business Services. He manages Single-Family business initiatives, including offerings and products, contract finance, affordable lending, and customer training and education. He also is responsible for Freddie Mac's Uniform Mortgage Data Program®, an FHFA-directed initiative to transform the way lenders deliver loans to the GSEs. Previously, Dawson managed Freddie Mac's structured products issuance programs, including all REMICs, Strips, and other structured securitizations. He also was responsible for Freddie Mac’s Gold PC issuance programs and external money manager program, among other activities. Dawson, a Chartered Financial Analyst, joined Freddie Mac in 1985.
From a lender’s point of view, one of the most critical needs for building a successful business in today’s mortgage market is certainty.
Lenders want greater certainty each loan file is complete before delivery. They want certainty borrower and collateral data are accurate. They want certainty the loan complies with the investor’s guidelines so, and most importantly, they have certainty the loans they sell will stay sold. Period! That’s why Freddie Mac’s Single-Family Business is focused on giving our customers greater certainty in every loan we buy or guarantee. We call it our Greater Purchase Certainty initiative.
Changes are afoot in the world of conforming, conventional mortgages. Under the Federal Housing Finance Agency's (FHFA) direction, we're changing our traditional approach to the "representations and warranties" lenders make that the loans they sell us comply with our Seller/Servicer Guide and business terms. Historically, these reps and warranties last for the life of the loan and are an important incentive for delivering quality mortgages to Freddie Mac. That's because rep and warranty violations can lead to a wide range of actions, from one-on-one discussions with lenders about improving their business processes to repurchase requests.
Starting next year, under FHFA’s direction, Freddie Mac will relieve lenders from certain reps and warranties involving the underwriting of borrower credit and the property securing the mortgage, if there are no delinquencies during the first 36 months and other quality performance milestones are met. In the case of Freddie Mac's Relief Refinance Mortgages, which includes Home Affordable Refinance Program (HARP) mortgages, rep and warranty relief can occur after just 12 months of consecutive, on-time mortgage payments. The new policy will apply to all single family mortgages sold to Freddie Mac on or after January 1, 2013. (For details of our new Representation and Warranty Framework, click here.)
June is National Homeownership Month, a good time to reflect on what really goes into making homeownership affordable and accessible to many U.S. households.
More than 60 percent of U.S. households own their homes, and others strive to do so. The opportunity to buy a home, and to finance that home at reasonable rates over the long term, has expanded to more households because of Freddie Mac's work with lenders, real estate professionals, government programs, and community organizations across the country.