I agree with all these rules, however the US Gov is why there is a mess right now, subprimes loans in addition to Fannie/Freddie owning in incredible amounts of loans. I just found out they own our loan, a normal over 20% down down coventional 15 year. Why are they buying loans like mine?? The gov needs to get out of the loan business.
Your kind of loan used to be really all Fannie did...
Same with me. I bought a house last year, 20% down, no other debt whatsoever, credit scores over 800, and decent sized savings accounts. Wells Fargo sold it to FNMA.
“Why are they buying loans like mine?? “
The loan originator sells loans like yours to Fannie and Freddie to get the loan off of his books. This gets the lender liquid again so that his money isn’t tied up in your paper, and then he can lend again.
This is the whole purpose of Fannie and Freddie, to provide a secondary market for real estate paper. The system worked well for the 60 years that loan originators kept to conforming standards.