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Home » Store » Taxable » GSE Underwriting Blamed for Weakening Credit Performance, Called Intrusive

GSE Underwriting Blamed for Weakening Credit Performance, Called Intrusive

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The widely deployed automated underwriting systems developed by Fannie Mae and Freddie Mac may be leading to lower credit quality and a less healthy primary mortgage market, according to recent reports. Mortgage Guaranty Insurance Corp., the largest private MI in the market, partly attributed rising delinquency rates on its traditional business to Desktop Underwriter and Loan Prospector, the automated loan approval systems offered by Fannie Mae
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