The new IDR process is not expected to be used frequently and most disputes will continue to be resolved through the appeal and escalation processes already in place. The arbitrator’s determination will be the final decision on whether or not a defect existed at the time the IDR began. Their determination will include a written award and a brief opinion. The components of the IDR process will hopefully allow lenders to better manage their risk in determining the best course of action for a repurchase situation.
According to SEL-2016-01 and Bulletin 2016-1, all updates will be incorporated into the Fannie Mae Selling Guide and the Freddie Mac Guide later this year and are effective for loans dated January 1, 2016.