How Can Fannie Mae Help With a Loan?
- On their website, Fannie Mae states, "Our job is to help those who house America." In a broader sense, Fannie Mae helps individuals obtain home loans more easily by increasing liquidity for lenders. They provide funds to mortgage bankers and lenders by buying the loans they originate, packaging them, and selling the debt on the secondary mortgage market as mortgage-backed securities (MBS).
- Fannie Mae's lenders' guidelines help minimize the risk of borrowers defaulting. They list their loan purchase criteria in the "Fannie Mae Selling Guide." Their standards include limits on how much one can borrow on a property, minimum FICO scores, minimum income requirements and loan limits.
- In an effort to aid borrowers in distress, Fannie Mae offers "Know Your Options," an educational website. The interactive tools on the site provide information on refinancing, repayment plans, forbearance and loan modifications for those who want to stay in their homes. For those who can't afford their mortgage, the site explains short sales and deed-in-lieu options to foreclosure.
