Search results
Results from the WOW.Com Content Network
Fannie Mae and Freddie Mac are the two largest companies that purchase mortgages from other lenders in the United States. Many lenders will underwrite their files according to their guidelines, but to ensure the eligibility to be purchased by Fannie Mae and Freddie Mac, underwriters will utilize what is called automated underwriting. This is a ...
Fannie Mae produced an automated underwriting system (AUS) tool called Desktop Underwriter (DU) which lenders can use to automatically determine if a loan is conforming; Fannie Mae followed this program up in 2004 with Custom DU, which allows lenders to set custom underwriting rules to handle nonconforming loans as well. [64]
In most cases, a loan officer or mortgage broker will collect your information and submit it to an underwriting software system – Desktop Underwriter for a loan that will be sold to Fannie Mae ...
Many lenders closely follow underwriting guidelines issued by Fannie Mae and Freddie Mac, ... it can be easier to qualify a borrower through manual underwriting as opposed to an automated system ...
Whether or not a loan is conforming depends on the size and set of guidelines which are implemented in an automated underwriting system. [1] Non-conforming mortgage loans which cannot be sold to Fannie or Freddie are either "jumbo" or "subprime", and can also be packaged into mortgage-backed securities. Some companies, called correspondent ...
An FNMA loan, aka a conforming loan or Fannie Mae-backed mortgage, is a loan or mortgage that has been sold to the Federal National Mortgage Association (FNMA, or Fannie Mae) — or one that meets ...
In a paper written in January 2004, OFHEO described the process: "Once Fannie Mae and Freddie Mac began to use scoring and automated underwriting in their internal business operations, it was not long before each Enterprise required the single-family lenders with which it does business to use such tools. The Enterprises did so by including the ...
Fannie Mae and Freddie Mac were in the news a lot this year. For starters, there was the presidential summit in August, to solicit ideas for what to do with the ailing government-sponsored ...