Home Lending

Register now

Freddie Expands Loan Offerings

CHICAGO-Freddie Mac has expanded the list of mortgage products available through its web-based Selling System by adding a new array of 40-year fixed-rate mortgages, 20 adjustable-rate mortgages and federally insured rural housing mortgage products to its Loan Prospector and online Selling System.

Freddie is also beefing up its flagship suite of Home Possibles affordable mortgage products by adding a special 40-year fixed-rate option and providing lenders with more competitive selling options.

Separately, the company said it is revising its property insurance requirements to facilitate mortgage purchases in coastal markets where insurers are raising their deductibles.

CRL Debunks Subprime Myth

WASHINGTON, D.C.-The Center for Responsible Lending is seeking to debunk subprime lenders' claims that the reason African Americans and Latinos are relegated to high-interest subprime mortgages more often than whites is due to less creditworthiness.

CRL's research shows these disparities persist even when the ethnic borrowers have the same qualifications as their white counterparts.

"Even after controlling for differences such as credit scores and the amount of the down payment, African-Americans and Latinos still wind up with a disproportionate share of expensive loans," CRL said.

CRL researchers examined 50,000 subprime loans and found African Americans and Latinos were almost a third more likely than whites with the same credit profile to get a high-priced loan.

Ellie Mae Reports Record Demand

DUBLIN, Calif.-Ellie Mae, a provider of software and services for the mortgage industry, is reporting record demand for its Encompass Mortgage Automation System.

Despite the mortgage industry slowdown, over the past 12 months Ellie Mae has increased its number of Encompass loan origination system clients by 216%, growing from 5,586 companies using Encompass in May 2005 to 12,067 companies using it in May 2006. Encompass users have also grown substantially from 73,768 to 119,510. At the end of 2004, Encompass was estimated to have 7% share of the loan origination system market by loan volume according to Wholesale Access. The latest 2006 figures reflect a market share of 28%, the firm added.

For info: www.EllieMae.com

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER