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Freddie Mac Loans - Mortgage Underwriting
US Lenders try to comply with the mortgage underwriting guidelines of the Federal
Home Loan Mortgage Company, or Freddie Mac for short. FMLMC began as federal government
chartered organization in 1970 but was transitioned to a publicly owned company
in 1989. It’s current activities are overseen by the Federal Government,
albeit among some controversy.
The original goal of Freddie Mac was to provide a continuous and low-cost source
of capital to finance America's housing, In that way, it would help to help to
keep mortgage costs down, keep money
flowing to mortgage lenders in support of home ownership and rental housing, and
provide an integrated financial system to replace the regional ones that covered
the US in the 1960’s.
Freddie Mac Buys Home Mortgages
FMLMC one of the biggest buyers of home
mortgages in the US, conducts its business primarily by buying mortgages from
lenders, packaging the mortgages into securities, and selling the securities to
investors including insurance companies and pension fund managers. The company
doesn’t make mortgage loans directly to homebuyers and they aren’t
a mortgage broker. Instead, they buy mortgages
from lenders including big commercial
banks, mortgage banks, savings and loans,
financial institutions and credit unions across the country. By buying mortgages
of all kinds, Freddie Mac keeps the mortgage industry alive and well and ensures
that homeowners can buy homes and that renters in apartment buildings will also
have a home to live. This is all made possible with the financial and knowledge
resources Freddie Mac has at its disposal.
At some point in time your home mortgage may have been purchased by Freddie
Mac. As an underwriter for home loans, they
assume the financial risk of holding the loan and you may never actually know
that your home’s mortgage ever came through their office.
Similar to Freddie Mac, the Federal National Mortgage Association or Fannie
Mae, also helps to increase the opportunities for home ownership and affordable
rental housing for all Americans.
Contact GNA Mortgage Group home mortgage
specialist to learn how we help you with mortgage
planning or mortgage refinancing,
and to find and decide on a home loan that
suits your specific needs.
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