The issue addressed in the article is a company (Citi) in this case not underwriting to the guidelines they said they were following. In reviewing the mortgages that they had purchased from Citi , Freddie had determined they were flawed. Basically, Citi is being sloppy. This is NOT the same as huge underwriting guideline changes coming down the pike from Fannie/Freddie/FHA, it is just that Citi will have to clean up their underwriting and get their paperwork in order.
I dont see this as a huge driver of a contraction of mortgage credit and its effect on the market will be negligble.[/quote]
but during the bubble, fannie didn’t lower underwriting standards so much as sloppy paper was sent their way?
Wasn’t Fannie always prime conforming paper, from the very beginning, nonetheless, they were fed
shitpiles of bad paper.
it’s why the BofA bailout is so egregious.
they gave these miserable POS, so much room
to screw the taxpayers.
