Underwriting, because the a standard routine, ‘s the comparison out-of exposure. According to Wikipedia, mortgage underwriting are the method a lender spends to decide in the event your chance of providing an interest rate to help you a particular borrower is suitable.

Exactly what, exactly, meaning in the traditional financial industry is primarily determined by Freddie Mac computer and you can Federal national mortgage association. Because the government agencies at the rear of the fresh countless mortgage loans securitized and you will marketed from year to year along side investment areas, Freddie and you may Fannie’s obligation is to try to make certain loan exposure profiles see buyer standards. Read more