24 Jan The new Influence regarding Fannie and Freddie toward Mortgage Terms
This papers uses a manuscript crucial details method to assess brand new effect one GSE pick qualifications got on the balance mortgage loan terms at that time off 2003 in order to 2007. The process is designed to remove sources of bias that can keeps impacted earlier education. GSE qualification seemingly have lowered rates of the regarding the 10 basis affairs, recommended fixed-rates loans over Palms, and you can disappointed reduced-documentation and brokered loans. There is no measurable effect on loan abilities otherwise with the incidence regarding certain types of "exotic" mortgage loans.