A borrower initiates the loan request to a local lender. If the lender is not able to approve the loan without a guarantee then they apply to the agency, which is often federal, to guarantee the loan in case the loan goes into default.
A borrower initiates the loan request to a local lender. If the lender is not able to approve the loan without a guarantee then they apply to the agency, which is often federal, to guarantee the loan in case the loan goes into default.