Mortgage lending institutions, both bank and non-bank, sell most of their loans to either Fannie Mae or Freddie Mac, known as government-sponsored business, or GSEs. It can take a few weeks after a loan closes for it to be offered. More than 3 million loans are currently in the forbearance program. Due To The Fact That Fannie and Freddie would not purchase the loans that had actually just closed, credit tightened up dramatically, making it harder to get a brand-new loan for all debtors.”We invite the modification in policy that directs the GSEs to buy most loans in forbearance,” stated Bob Broeksmit, CEO of the Mortgage Bankers Association.
Signage stands outside the Freddie Mac headquarters in McLean, Virginia, U.S., on Tuesday, Oct. 1
, 2019. Andrew Harrer