ABA looks forward to working with the FHFA as the framework is implemented... Increasing [the review process’s] transparency... and relieving lenders of certain repurchase obligations for loans that meet specified payment requirements will increase business certainty, reduce operating costs and ultimately lower credit costs to borrowers.
Under the new framework, lenders will be relieved of certain repurchase obligations for loans that meet specific payment requirements, the FHFA said. For example, rep and warranty relief will be provided for loans with 36 months of consecutive, on-time payments.
Read more about the framework.
Read Keating’s statement.