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Article: Crowding out in the nonconforming market? (Secondary Market).(Fannie Mae, Freddie Mac)
- Article from:
- Mortgage Banking
- Article date:
- June 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Mortgage Bankers Association of America. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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How will nonconforming lenders do when Fannie and Freddie move more aggressively into that market? What are the niche strategies that are helping these nimble, smaller companies survive?
FANNIE MAE AND FREDDIE MAC have similar effects on the mortgage industry as the sun does on the earth. These two government-sponsored enterprises (GSEs) can sustain life in the mortgage markets--and stifle it as well--just as the sun can with its varying degrees of solar energy. As the two secondary market companies continue buying more loans farther down the credit spectrum, some lenders praise the sunlight while others curse the heat.
So prominent are the two GSEs in ...