Fannie Mae and PMI Mortgage Insurance Co. Announce Strategic Partnership for Electronic Loan Decision-Making

Strategic Insights -

Fannie Mae, the nation's largest source of home mortgage funds, and PMI Mortgage Insurance Co., the nation's third largest mortgage insurer, have announced a strategic partnership to integrate special FHA and VA guidelines from PMI's pmiAura electronic mortgage underwriting engine with Fannie Mae's Desktop Underwriter loan decision system. This partnership will enable mortgage lenders to make all-in-one electronic loan decisions, including for FHA and VA home loans, and will provide faster and more efficient loan approval processes.

Key Takeaways:

  • The partnership between Fannie Mae and PMI Mortgage Insurance Co. will integrate PMI's pmiAura electronic mortgage underwriting engine with Fannie Mae's Desktop Underwriter loan decision system, enabling mortgage lenders to make all-in-one electronic loan decisions.
  • The integration will allow lenders to process FHA and VA mortgage loans through Desktop Underwriter in as few as 48 hours.
  • Jayne Shontell, Fannie Mae Senior Vice President for Financial and Information Services, said that the partnership will provide mortgage lenders and home buyers with a new way to get approval decisions on FHA and VA loans faster and more efficiently.
  • W. Roger Haughton, President and Chief Executive Officer of PMI Mortgage Insurance Co., stated that PMI's "Freedom of Choice" vision is to give lenders the technological flexibility and sophistication to realize today's full range of underwriting options.
  • The partnership is a result of Fannie Mae's commitment to provide an open, comprehensive, and modular electronic loan decision system for each segment of mortgage lenders' businesses.
  • PMI unveiled the pmiAURA system's government model in the spring of 1995, and HUD approved the first lender to use the system to underwrite FHA loans shortly afterwards.
  • The partnership will provide lenders with the flexibility to sell loans to any investor based on their business interests.
  • Once the integration is complete, lenders will have a complete menu of loan decisions available on Desktop Underwriter, including the ability to underwrite FHA and VA mortgage loans.

Statistics:

  • Fannie Mae has committed to provide $1 trillion in targeted lending for 10 million homes by the end of the decade.
  • PMI Mortgage Insurance Co. is the third largest private mortgage insurer in the United States, with an insurance-in-force of $66 billion at year-end 1994.

Sources:

  • FNM Mortgages (Fannie Mae)
  • PRNewswire (October 17, 1995)
  • PMI Mortgage Insurance Co.
  • HUD (Department of Housing and Urban Development)
  • The PMI Group, Inc.