Fannie Mae, Freddie
Mac Reach Deal to Ease Mortgage Lending
The Federal Housing Finance Agency has crafted new rules in an effort to relax tight mortgage standards that have made it challenging for borrowers with imperfect credit to obtain affordable home loans. The agency oversees Fannie Mae and Freddie Mac, which in recent years have forced banks to buy back loans that turned out to be poorly underwritten. The threat of legal liability has prompted banks, in turn, to cater to consumers with stellar credit. The FHFA's proposed new rules aim to reassure banks by explicitly spelling out what conditions warrant repurchase demands and lowering the minimum down payment for loans sold to Fannie Mae and Freddie Mac to 3 percent from 5 percent.
From "Fannie Mae, Freddie Mac Reach Deal to Ease Mortgage Lending"
Los Angeles Times (10/18/14) Reckard, E. Scott; Logan, Tim
The Federal Housing Finance Agency has crafted new rules in an effort to relax tight mortgage standards that have made it challenging for borrowers with imperfect credit to obtain affordable home loans. The agency oversees Fannie Mae and Freddie Mac, which in recent years have forced banks to buy back loans that turned out to be poorly underwritten. The threat of legal liability has prompted banks, in turn, to cater to consumers with stellar credit. The FHFA's proposed new rules aim to reassure banks by explicitly spelling out what conditions warrant repurchase demands and lowering the minimum down payment for loans sold to Fannie Mae and Freddie Mac to 3 percent from 5 percent.
From "Fannie Mae, Freddie Mac Reach Deal to Ease Mortgage Lending"
Los Angeles Times (10/18/14) Reckard, E. Scott; Logan, Tim
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