Revisiting targeted-affordable lending: fresh evidence finds far lower default rate
Article Abstract:
Freddie Mac's targeted affordable-housing lending scheme offers lower-income families expanded homeownership opportunities within their means. Unlike traditional lending programs, Freddie Mac's Affordable Gold initiative lower-income families can own homes with less hindrance through changes in many qualifying requirements as well as improvements in borrower-repayment reliability through customer counseling and partnerships with community-based organizations. Also, the Affordable Gold effort proves that lower-income lending can be good business when conducted using good business practices.
Publication Name: Secondary Mortgage Markets
Subject: Economics
ISSN: 0740-4271
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Payment options proliferate among ARMs
Article Abstract:
Freddie Mac's 14th annual adjustable mortgage (ARM) nationwide survey reveals that the ARM 7/1 payment option is offered by more lenders in 1997. The option, which requires an initial interest rate for seven years and adjusts annually thereafter, was chosen by 64% of the lenders who participated in the survey, up 16% from that in 1996. It has surpassed the more popular ARM 1/1 payment option. According to the survey, the 10/1 ARM is also gaining ground with 52% of the respondents while only 44% offered the 3/3 ARM.
Publication Name: Secondary Mortgage Markets
Subject: Economics
ISSN: 0740-4271
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Organizational form and efficiency: evidence from Indian sugar manufacturing. Impact of central planning on production efficiency: the case of the cotton yarn industry in China
- Abstracts: Exchange risk in the EMS: some evidence based on a GARCH model. Risk Pooling in the Presence of Moral Hazard
- Abstracts: The economics of factoring accounts receivable. Intangible investment, debt financing and managerial incentives
- Abstracts: Do supervisory inputs matter in a capital-intensive industry? some evidence from a Japanese car transplant. Hierarchial reporting, aggregation, and information cascades
- Abstracts: Production, inventory and waiting time. Hierarchical delays as a source of nominal price rigidities: evidence from the microcomputer industry