Freddie Mac announced partnership with Quicken Loans to offer a series of opportunities to individuals to own a dream home. The partnership between the two financial firms was announced during the 102nd Annual Convention and Expo held in San Diego, California.
About 4,500 finance professionals relating to the real estate sector attended the convention that was organized by Mortgage Bankers Association. The partnership will pilot several programs that are aimed at getting more Americans the chance to obtain homeownership, and also allow development of a smarter and more responsive mortgage loan system.
According to Executive Vice President of Freddie Mac, Dave Lowman, the partnership will dedicate to simplify the process of obtaining quality home loans. The main aim is to give more opportunities to Americans in achieving homeownership.
He said that the partnership intends to achieve this goal through utilizing the strength and weaknesses of the two firms and exploring opportunities that will make borrowing a more simple and straightforward approach.
Established in 1970, Freddie Mac is a public company in the US that provides stability to the residential real estate market and makes it more affordable and liquid for individuals. The financial institution, which made headlines during the 2008 financial meltdown, offers affordable mortgage loans to Americans. At present, Freddie Mac along with Fannie Mae is the largest mortgage lender in the US with a portfolio of over $1.5 trillion.
Quicken Loans Inc. is a private mortgage finance company that is headquartered in Detroit, Michigan. The company became the second largest private US retail lender, and the largest online retail mortgage lender in 2012. That year, the company offered about $70 billion in home loans which represented a 133% increase in loans as compared the previous year. It offers various financial products to customers such as One Reverse Mortgage, Title Source, and Quicken Loans.
VP, Lowman, says that Freddie Mac hopes to utilize the results of the partnership to make successful home ownership possible for customers. The goal of the latest partnership agreement is to offer mortgage loans to wider audiences, and make their dream of home ownership come true.
The announcement of the partnership will enhance both lender companies’ customer base. It will help them build stronger customer ties and bring more stability and liquidity to the real estate industry. And this is possible through offering affordable housing loans to individual Americans.
The latest partnership intends to develop unique partnership that will be co-developed to satisfy the needs of various individuals including first time homebuyers, Millennials, and middle class Americans in owning a home.
According to Lowman, both companies will explore opportunities to expand and modify current home loan products. The companies also intend to develop educational programs for first time homebuyers in obtaining a mortgage loan. Moreover, both the companies will look into the possibility of expanding Freddie Mac's current product known as Home Possible, which enables individuals to obtain a loan with as little capital as 3%.
Bill Emerson, Quicken Loans CEO, perfectly summed up the partnership agreement by stating, “This partnership will create programs that will open the door of homeownership to many of America’s families.”
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