Using Fannie Mae

Many people save for a large part of their life and work to keep their credit immaculate just so that they can live the American Dream of buying a home. A home is an investment and often symbolizes who we are in the world. The public mission of Fannie Mae is to help Americans by homes. Fannie Mae was established in 1968 and has since helped more than 63 million families buy a home. In addition to helping families by homes, they can also help families save their homes.

Fannie Mae does not want to see families in foreclosure. Everybody loses when a home is foreclosed on and many homes endure a significant amount of depreciation when a family is foreclosed on. Many people will completely stop caring for the home because they know that they are losing it and so, the home actually loses its value and makes it harder on the individual and bank to sell the home and get their money back.

Fannie Mae uses a "Risk Profiler" which helps them to determine which borrowers and loans are in danger of going into default. This allows their lenders to contact the borrowers and begin taking steps to help the borrower out of their situation. Not all foreclosures can be avoided but Fannie Mae will help the homeowner correct their problem so that foreclosure does not occur.

Fannie Mae purchases mortgages from banks and then will bundle several mortgages together in a tradable security, which is then sold to large investors. The concept that Fannie Mae operates on is that the banks will use the money they obtain from selling their own mortgages to fund additional mortgages. The company itself does not make loans to the homebuyer. The company only works to make mortgages more accessible and affordable for families. Fannie Mae does not lend to consumers directly, but they make funds available through mortgage lenders. The lenders will work with Fannie Mae to provide affordable mortgages to families. If you are interested in working with Fannie may, you must find a Fannie Mae affiliated lender.

Fannie Mae lenders use an automatic underwriting system called Desktop Underwriter. The program considers all of the risk factors involved with a borrower when they are looking to purchase a home. The program examines the loan application as well as various other credit report factors that play a role in determining the risk factors for individuals looking to obtain a mortgage. The goal of Fannie Mae is to provide a consistent and unbiased underwriting program through Desktop Underwriter. The program is able to improve homeownership opportunities, as it streamlines the loan application process and makes quick evaluations of individuals on an unbiased level.

If you already have a mortgage but would like to make improvements to your home, Fannie Mae also provides a variety of HomeStyle mortgages. These are designed to offer borrowers an affordable home improvement mortgage and provides affordable financing for homes that need improvements and repair. The company is heavily involved in second mortgages that individuals take out to make repairs and renovations to homes as well.