Fannie Tightens ARM Underwriting, ARM Originations Down Due to Poor Performance
May 6, 2010
Fannie Mae announced late last week that it is implementing new underwriting standards for certain hybrid adjustable-rate mortgages, products that have consistently performed worse than fixed-rate mortgages. The government-sponsored enterprise also restricted access to another unconventional loan, the interest-only mortgage.Fannie said that for ARMs with initial...