Tag: lender

Frannie buy-back risk lessened, sort of

Fannie Mae and Freddie Mac (Frannie) have answered the cry of lenders to reduce the risk of buy-backs. Buy-backs, also known as put-backs, occur when Frannie requires the lender to repurchase a loan it made which contains underwriting flaws.

Under recently revised Frannie rules, buy-backs on loans originated on and after January 1, 2013 will have…

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