With the crash of 2008, the federal government took over the largest purchasers of conventional mortgage loans in this country; Fannie Mae and Freddie Mac. They said this was done to protect the taxpayers against major losses that might be sustained by these agencies. (Takeover) In September of 2008, the agencies were placed into conservatorship and provided with about $190…
Fannie Mae announced some recent changes to their HomeReady loan program, with more changes coming later. The intent is to make it easier for more people to qualify to buy or refinance a home. Are we heading down the same path that got us in trouble in the past? The HomeReady program was developed by Fannie to increase the potential…
Freddie Mac and Fannie Mae jointly announced the implementation of an Independent Dispute Resolution (IDR) process which is designed to help resolve alleged loan-level breaches of selling representations or warranties that remain unresolved after all other appeals have been exhausted. This was announced in Freddie Mac’s Guide Bulletin 2016-1. This final, final appeal process will be available for all mortgages…
If you recall, I recently wrote about the intention of Fannie and Freddie to begin requiring a new expanded credit score model. This new model will take into account a consumer’s credit trends (historical use of credit) plus begin the utilization of heretofore non-traditional credit sources (Credit Scores). It seems the good old FICO credit score ain’t so good no…
Recently, Fannie Mae announced the implementation of its new “Home Ready” mortgage product. According to Fannie Mae, this mortgage product was designed to support homeownership opportunities among underserved populations. They now recognize the growth of extended-household living arrangements and by allow the existence of non-borrower income to be considered as a compensating factor in Desktop Underwriter. Articles are already being…
Fannie Mae and Equifax have announced that Fannie will be incorporating credit trending information, provided by Equifax, into Desktop Underwriter. In addition, lenders will be able to verify an applicant’s income and employment through DU using either Equifax’s “The Work Number” product or through a manual verification service offered by Equifax (Verifications). Both Fannie Mae and Equifax tout this as…
