Q That's, it's a, that's, that's a lending change, right? But isn't that up to the individual banks they could change?
A They put overlays on top of Fannie Mae's requirements, but Fannie Mae, because they actually put, so when the global financial crisis happened, there were such, ah, very high fees and penalties that went for banks that didn't have really strict overlays that actually had a ton of defaults. And so now banks are super nervous To lend to people, and actually take risk, that they actually follow Fannie Mae's guidelines very strictly, and actually put overlays on top of it. So they actually are more conservative a lot of times than what the underwriting requirements are. And so, in order for them to actually start to take risk, I think Fannie Mae would have to encourage it, and they'd have to do it in such a way that they don't penalize.
AI assessment note: “in order for them to actually start to take risk, I think Fannie Mae would have to encourage it”