Many borrowers feel the whole
mortgage loan process is overwhelming. Perhaps more today because it is so
easy to get a credit card. But a credit card may have a $1000 limit which is a
long way from a $200,000 loan limit. While the paperwork seems intimidating,
underwriters that review loan applications for the lenders, state "we don’t
just make this stuff up as we go along". They are bounded by the
requirements to which the loans are sold: the secondary market. The secondary
market consists of
FANNIE
MAE
and
FREDDIE MAC
and other investors. Fannie Mae and
Freddie Mac are federally chartered stockholder-owned companies that make more
monies available for mortgage loans by purchasing real estate
mortgage loans
from lenders.
This paperwork is used by the
financial community to answer the following three questions:
