10,000 lenders set their own standards

Some loan advisors claimthat the big nationalmortgage companies,Fannie Mae and FreddieMac, set underwriting standards for nearly all mortgage loans. Fannie and Freddie actually account for less than 40 percent of the residential real estate financing issued throughout the United States. A big number, yes, but hardly all-powerful. Moreover, Fannie and Freddie do not perfectly mirror each other. Both Fannie and Freddie publish underwriting guidelines, not edicts. Lenders who sell loans to Fannie and Freddie remain free to apply a reasonable degree of flexibility.