“The most common example is a loan program for self-employed borrowers that relies on bank statements, rather than tax returns, to determine income,” Fitch said.
HomeReady will become part of DU later this year and replaces the MyCommunityMortgage product, which in some circles was known as Fannie’s “subprime” option.
Freddie’s multifamily business grew so much that some industry observers worried that the GSE could reach the $30 billion annual multifamily business cap set by the FHFA.
Commercial banks and savings institutions kept increasing their stake in agency mortgage-backed securities during the second quarter of 2015, according to a new Inside MBS & ABS ranking and analysis.