Fannie Mae & Freddie Mac announced this week that they are going to take a more aggressive stance with unscrupulous lenders, especially those who have been taking shortcuts recently when it comes to originating their mortgages.

How Will The Changes Work?

As with any changes that Fannie Mae and Freddie Mac announce regarding the mortgage industry Bend Oregon Realtor’s and mortgage professionals across the United States wonder what their changes will look like when they finally start taking place.

The latest changes that Fannie Mae and Freddie Mac are proposing will start grading lenders and banks on the following areas:


Quality Control


It’s both Fannie and Freddie’s goal that loans will be scrutinized more than they are now and if any defects are found in a loan, the loan will be kicked back to the lender or origination bank instead of going through.

More Zero Defect Loans

Both Fannie Mae and Freddie Mac are hopeful that with more criteria in place to judge a loan before it’s approved there will be zero defect loans.

The new stringent process that loans will have to go through, before they are approved, is also aimed at eliminating the potential for lack of control or management in file documents that contributed to the global financial collapse which started in 2007.

Freddie Mac and Fannie Mae’s new qualifications that mortgage loans must meet before they are approved is expected to have an effect on mortgage interest rates since more mortgage professionals will be needed to perform quality control services on mortgage loans before they are approved.

Although these latest changes from Fannie Mae and Freddie Mac might not be popular with everyone, it’s better that they come now, than never, because, it’s almost impossible for a mortgage loan to be corrected, if it’s found to be defective, even as early as one year after it was originated.

What are your thoughts about changes to the mortgage industry? Feel free to leave me your thoughts below.

For more mortgage industry news, or to view the latest Bend Oregon homes for sale, contact me today by calling (541) 383-1426.