How to Use Fannie Mae and Freddie Mac Loan Lookup Tools
Knowing how to verify loans registered with Fannie Mae or Freddie Mac is crucial for title insurance agency employees. These tools help confirm the current loan holder and match it with the payoff provider, ensuring accuracy in your transactions. Here’s a comprehensive guide on when and how to use these lookup tools effectively.
When Do You Use the Fannie Mae and Freddie Mac Loan Lookup Tools?
Prerequisite Information
How to Use Fannie Mae and Freddie Mac Lookup Tools
Importance of Using Loan Lookup Tools Correctly
Best Practices for Title Insurance Agency Employees
When Do You Use the Fannie Mae and Freddie Mac Loan Lookup Tools?
Similar to the MERS loan registry, some loans are backed and registered by Fannie Mae or Freddie Mac. After completing the title commitment, if Schedule BI shows a mortgage, you should look up the loan on the Fannie Mae or Freddie Mac websites. This verification is essential to ensure the name of the current loan holder matches the provider of the payoff, avoiding discrepancies and ensuring a smooth transaction process.
Prerequisite Information
To locate servicer information for a mortgage loan, you will need the following search criteria:
Property Address: The full address of the property in question.
Borrower Name: The full legal name of the borrower(s).
Borrower Social Security Number: The social security number of the borrower(s) for accurate identification.
How to Use Fannie Mae and Freddie Mac Lookup Tools
Follow these steps to perform a loan lookup:
Access the Lookup Tools
Fannie Mae: Fannie Mae Loan Lookup Tool
Freddie Mac: Freddie Mac Loan Lookup Tool
Enter the Required Information
Input the property address, borrower name, and borrower social security number into the respective fields on the lookup tool.
Perform the Search
Click the search button to locate the current loan information. The tool will search its database to confirm if the loan is backed by Fannie Mae or Freddie Mac.
Verify and Document
Check that the name of the current loan holder matches the provider of the payoff. Print the search results to PDF and save them to your file. This step ensures you have documented proof of the loan holder for future reference and transaction processing.
Importance of Using Loan Lookup Tools Correctly
Using the Fannie Mae and Freddie Mac lookup tools correctly is essential for:
Accurate Payoff Orders: Ensures that you are requesting the payoff from the correct loan holder, which is critical for timely
and error-free transactions.
Clear Title Liens: Verifies that all liens are accurately identified and cleared, ensuring the buyer receives a clear title.
Regulatory Compliance: Keeps your processes compliant with legal and regulatory requirements, reducing the risk of legal issues.
Best Practices for Title Insurance Agency Employees
Stay Updated: Regularly update your knowledge about Fannie Mae and Freddie Mac tools and any changes in their processes.
Double-Check Information: Always verify that the information in the lookup tool matches your records to avoid discrepancies.
Maintain Documentation: Keep thorough records of all searches and transactions conducted through these tools.
Training: Ensure all employees are trained on how to use these lookup tools effectively and understand their importance in the title insurance process.
By following these guidelines and utilizing the Fannie Mae and Freddie Mac lookup tools accurately, title insurance professionals can streamline the mortgage payoff process, ensuring clear and marketable titles for property transactions. For more detailed information and additional resources, visit the respective Fannie Mae and Freddie Mac websites and consult with your agency’s internal guidelines and training materials.
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**DISCLAIMER**
The information provided here is for general guidance and educational purposes only. I am not an attorney and am not giving legal advice. Information should not be considered legal, underwriting, or financial advice and is followed at your own risk. Readers should consult with their attorney and/or underwriter to obtain advice tailored to their specific circumstances.