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What's the difference between Fanny Mae and a Freddy Mac?

Is one better than the other? by lcheng882 from Bainbridge, New York. Jul 15th 2020 Reply

Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

Besides being two different companies their underwriting guidelines are a little different from each other. Freddie Mac seems to be a little more lenient in some situations.

Jul 15th 2020
Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,396 contributions

The Federal National Mortgage Association, FNMA, commonly called Fannie or Fannie Mae is a separate organization than The Federal Home Loan Mortgage Corporation, FHLMC, commonly called Freddie or Freddie Mac. They are both Government Sponsored Enterprises, or GSEs. Both of these organizations were chartered by congress as a means to streamline the process of bundling and selling mortgages to keep liquidity in the Mortgage market, making it easier and potentially cheaper for consumers to buy a home. They have underwriting rules that facilitate the quality of the files they acquire from Loan Originators. Although their rules are nearly identical in most aspects, there are some areas, that have distinctly different rules that can make one more attractive to a particular borrower circumstances than the other. In many cases it is possible for a borrower to be approved in one, but not the other. For this reason, it is best for a borrower to work with a seasoned and knowledgeable Mortgage Broker that has access to both underwriting models. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000

Jul 15th 2020
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