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.

Low Income Housing Prgrms, Finance, Services, Public housing, Housing policy

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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.

Mortgage Financing & Insurance, Surveys, Mortgages, Adjustable rate mortgages

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