A major change is underway at Fannie Mae to assure there is plenty of competition to service the lenders’ needs on the Day 1 Certainty (D1C) program as soon as possible. Fannie Mae is re-recording their webinars and had a presenter “huddle” on Friday 12/16/16 to retrain the Fannie Mae team to avoid references of exclusivity when discussing the D1C program. It should be noted that the exclusivity term applies specifically to Equifax, but that is only in regards to the pilot program; the actual program will be an “open” platform to multiple “direct” and “in-direct” venders.
As posted in a special NCRA email communication two weeks ago, Fannie Mae posted an application to be considered to be a D1C vender. For NCRA’s meeting with Fannie Mae last Thursday, the attached slide deck was presented and this link: https://www.fanniemae.com/content/news/du-validation-vendor-statement.pdf, which provides new insight into the process of being part of the D1C vender team.
NCRA will be hosting a call for members with the Fannie Mae D1C team in mid-January to go over more details about becoming a D1C vender. As an association, we have outlined several areas with Fannie Mae starting with communications, and including the backing of members via some type of “umbrella” E&O coverage and even the potential to develop another NCRA owned web portal to assure that there is a competitive portfolio of NCRA members as venders on the D1C, including several that are wholesale providers of products to a reseller network of indirect providers.
Members should find new recordings of webinars, updated web information, a new message to lenders highlighting the “open” network, and expansion of providers that will be on the D1C program starting in January 2017. Only the pilot program was planned to be “exclusive” and that was for a limited period of time. While some companies will not be able to meet all of the requirements to be a direct provider to the D1C program (perhaps issues with net worth, SOC2, etc.) there will be competing options for reseller programs to make all CRAs who provide Fannie Mae lenders credit reports able to select a partner to participate at an indirect level that will also include the same workflow and rep and warrant relief for the lenders as if they purchased the service from a direct provider.
1. Reference National Consumer Reporting Agency – http://www.ncrainc.org/
- On December 22, 2016