OFHEO: Fannie, Freddie must follow guidelines for nontraditional loans
Thursday, December 14th, 2006Federal regulators who oversee the financial health of government-sponsored mortgage repurchasers Fannie Mae and Freddie Mac say they must follow new guidelines for nontraditional loans.
The guidelines, published in September, direct federally chartered banks to use stricter underwriting standards and fully disclose to borrowers the risks such loans carry.
James Lockhart, director of the Office of Federal Housing Enterprise Oversight, said Fannie and Freddie have until Feb. 28 to report back to OFHEO on their progress in developing policies, consumer credit quality standards and capital provisions in line with the guidelines.




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