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

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.

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Document Details

Document Type
Technical Report
Publication Date
Nov 01, 1990
Accession Number
ADA270234

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Biomedical
  • Materials and Manufacturing Processes

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  • Congress
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  • Department Of Veterans Affairs
  • Employment
  • Families (Human)
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  • Law
  • Money
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  • United States
  • United States Government
  • Urban Areas

Fields of Study

  • Economics

Readers

  • Government and Public Administration Law.
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