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Do Fannine Mae and Freddie Mac *guarantee* conforming loans, or do them simply purchase them from lenders?

If the answer is “purchase”, are they legally required to purchase conforming loans from lending institutions, or can they decline to do so?

1 Thought on Conforming Loans and FNMA / FHLMC?
  1. Reply
    February 3, 2014 at 5:33 pm

    the only entity that GUARANTEES a mortgage is the VA. VA loans are the ONLY guaranteed mortgage loans.

    They dont purchase all loans, but only to those that are conformed to their “guidelines”. No Doc, Stated, and NoRatio loans are a few of the loans they do not buy.

    The loans MUST meet their strict guidelines to be purchased by Fannie Mae or Freddie Mac.

    FHA mortgages are NOT guaranteed as most ppl would think.

    PMI doesnt guarantee loans neither does it protect the borrower. It is there to protect the lender from a loss.

    hope this helps

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