Fannie mae guidelines pdf

Logo navy fm logo 72x242. 1968, a publicly traded company. Originally chartered as the National Mortgage Association of Washington, the organization's

Logo navy fm logo 72×242. 1968, a publicly traded company. Originally chartered as the National Mortgage Association of Washington, the organization’s explicit purpose was to provide local banks with federal money to finance home mortgages in an attempt to raise levels of home ownership and the availability of affordable housing. For the fannie mae guidelines pdf thirty years following its inception, Fannie Mae held a monopoly over the secondary mortgage market.

Other considerations may have motivated the New Deal focus on the housing market: about a third of the nation’s unemployed were in the building trade, and the government had a vested interest in getting them back to work by giving them homes to build. As such, Ginnie Mae is the only home-loan agency explicitly backed by the full faith and credit of the United States government. Residential Mortgage Loan Origination 2nd edition pg. Freddie Mac, to compete with Fannie Mae and thus facilitate a more robust and efficient secondary mortgage market. The Fannie Mae laws did not require the Banks to hand out subprime loans in any way. In 1992, President George H.

Bush signed the Housing and Community Development Act of 1992. Additionally, Community Reinvestment Act regulators, under the direction of HUD secretary Andrew Cuomo, gave higher ratings to banks that financed home loans to “credit-deprived” areas. In essence, banks were rewarded for by-passing loan standards, and instead, approving loans to those who were at high risk of defaulting. Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times.