RC_LA_DA_301.5 GSE and Agency Loss Mitigation Options

Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA) and the Veterans Administration (VA) are key players in the mortgage market. Fannie Mae and Freddie Mac are both government-sponsored enterprises (GSEs) that provide liquidity through their purchase and securitization of mortgage loans. The FHA and VA offer loan insurance (FHA) or a loan guarantee (VA) in order to allow borrowers to obtain financing where they may lack an adequate down payment. Other government agencies that insure or guarantee loans include the Office of Public and Indian Housing (PIH), which, like FHA is under the HUD umbrella, and the US Department of Agriculture (USDA). Loans insured or guaranteed by these government agencies are securitized via Ginnie Mae (GNMA). The loss mitigation programs designed by the GSEs and government agencies shape industry practice since they represent the largest percentage of mortgages in most servicers' portfolios.

GSE and Agency Loss Mitigation Options provides a brief overview of these organizations and the loss mitigation programs they offer. We begin with a discussion of loss mitigation options offered by the GSEs: Fannie Mae and Freddie Mac. We then present loss mitigation for loans insured or guaranteed by HUD. We conclude with an exploration of loss mitigation for VA loans.

This is a single-family/residential course.

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