Accession Number:

ADA270234

Title:

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

Descriptive Note:

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC RESOURCES COMMUNITY AND ECONOMIC DEVELOPMENT DIV

Personal Author(s):

Report Date:

1990-11-01

Pagination or Media Count:

54.0

Abstract:

Fannie Mae and Freddie Mac provide similar guidance to lenders from whom they purchase mortgages. Each agency sets out its standards in a SellerService 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 borrowers ability and willingness to repay the debt and the propertys value. The agencies suggest that lenders consider factors such as the borrowers housing expense-to-income ratio and track record in fulfilling previous debts. Property appraisals are required to ensure that the propertys market value is sufficient to provide adequate collateral for the mortgage loan.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE