these lenders often originate loans but quickly sell them to other investors. Purchase mortgages are usually bundled with similar loans and sold on the secondary market. Buyers on this secondary market are oftengovernment-sponsored enterprises (GSE), such as Fannie Mae and Freddie Mac. They then ...
“All conventional, conforming loans backed by Freddie Macwithout at least 20% downrequire some form of credit enhancement or PMI… If you have a convention mortgage, you’ll have to pay PMI until you’ve built more than 20% equity in your home.” ...
“Lenders have pulled back from these large loans if they exceed the threshold for purchases set by the government-sponsored entities Fannie Mae and Freddie Mac. ‘We are seeing a rolling credit crunch,’ said Kenneth Thomas, a Miami-based economist and banking analyst. ‘Money is still out t...