Fannie Mae and Guggenheim Partners LLC have established a program to help fund mortgage companies through Guggenheim's wholesale lending subsidiary, St. Petersburg, Fla.-based NattyMac.
The Wall Street Journal reports that under the program, Fannie Mae will ‘commit itself to buying home mortgages that meet certain quality standards.’
Freddie Mac set up a similar program with NattyMac last fall.
‘The warehouse lending industry has nearly exited the market, making it increasingly difficult for lenders to fund loans,’ Freddie Mac's CEO, Charles E. Haldeman Jr., said in October, following the company's pilot program announcement.
SOURCE: Wall Street Journal