Conventional Loans Dominate U.S. Mortgage Market

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Conventional Loans Dominate U.S. Mortgage Market

SEPTEMBER 29, 2014
by DAN GREEN

themortgagereports9-30-14Even as they’re losing market share, conventional mortgages via Fannie Mae and Freddie Mac dominate today’s mortgage lending landscape.

According to mortgage origination software maker Ellie Mae, nearly two-thirds of August’s closed loans were financed with conventional loans, with the majority of the remaining closed loans spread across FHA loansand VA loans.

A small percentage of August’s closed loans were linked to portfolio and jumbo loans.

WHAT IS A CONVENTIONAL MORTGAGE?

A conventional mortgage is a home loan which is not explicitly guaranteed or insured by a government agency. Conventional mortgages are typically backed by Fannie Mae or Freddie Mac, but not always.

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