Under fannie mae and freddie mac guidelines, the maximum gross adjustment to any one comparable sale is 25%.
What is Fannie Mae and Freddie Mac?
Congress established Freddie Mac and Fannie Mae. They play a significant role in the nation's home finance system by supplying the mortgage market with liquidity, stability, and affordability. They provide liquidity to thousands of banks, savings and loans, and mortgage firms who offer loans to finance housing.
In addition to purchasing mortgages from lenders, Fannie Mae and Freddie Mac also package the loans into mortgage-backed securities (MBS) that can be sold. Lenders carry out more lending with the funds they have raised by selling mortgages to the Enterprises. The Enterprises' purchases ensure that investors who acquire apartment buildings and other multifamily dwellings, as well as individuals and families who buy homes, have a consistent and reliable supply of mortgage funds.
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