Direct Sales To Fannie And Freddie Are Up

Non-bank mortgage lenders are increasing their direct sales to Fannie Mae and Freddie Mac. Fannie purchased 475 (47.5%) of its business from non-bank mortgage lenders last year, up from 33% in 2012. Freddie saw increases to 20% in 2013 vs 8% in 2012. This is, no doubt, in response to a sharp decline in chartered bank mortgage originations during this same period. Both agencies are looking harder at the financial stability of these sellers than ever before. As a result, they have terminated several relationships with smaller, lower capitalized mortgage bankers. I’m feeling very secure (by) being a Division of PRMI, one of the strongest capitalized mortgage bankers in the business.