Accession Number : ADA270234


Title :   Secondary Mortgage Market: Information on Underwriting and Home Loans in the Atlanta Area


Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC RESOURCES COMMUNITY AND ECONOMIC DEVELOPMENT DIV


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a270234.pdf


Report Date : Nov 1990


Pagination or Media Count : 54


Abstract : Fannie Mae and Freddie Mac provide similar guidance to lenders from whom they purchase mortgages. Each agency sets out its standards in a Seller/Service Guide provided to lenders to assist them in making acceptable loans. While Ginnie Mae does not have any underwriting guidelines, it relies on the HUD- and VA-established that lenders use to determine which mortgages qualify for HUD insurance or a VA guarantee. All four agencies (Fannie Mae, Freddie Mac, HUD, and VA) require that in determining which loans to approve lenders consider a potential borrower's ability and willingness to repay the debt and the property's value. The agencies suggest that lenders consider factors such as the borrower's housing expense-to-income ratio and track record in fulfilling previous debts. Property appraisals are required to ensure that the property's market value is sufficient to provide adequate collateral for the mortgage loan.


Descriptors :   *FINANCIAL MANAGEMENT , *MILITARY PUBLICATIONS , RISK , DEMOGRAPHY , HOUSING(DWELLINGS) , POPULATION , COSTS


Subject Categories : Administration and Management
      Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE