Both Fannie Mae and Freddie Mac reported in December that they are considering offering lenders alternatives to repurchase requests for loans that have documented defects but are still considered to be of good quality. I enjoy a good oxymoron. These are some of my favorites: “jumbo shrimp”, “serious joke”, “virtual reality”, “small crowd”, “random order”, “student teacher” and “act naturally”.…
Tag: GSE
Warning: Agencies Purchase Risky Business
The FHA premium cut and agency low down payment loans were intended to increase homeownership among first-time and low to moderate income home buyers. It hasn’t worked so far. The premium cut tends to have just redirected borrowers from traditional conventional loan programs into an FHA-insured loan. Also, those who recently closed using FHA insured loans refinanced those same loans…