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…
Tag: Fannie Mae
Appeal of the Appeal’s Appeal
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…
Score Wars: The Sequel
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…
Home Ready (or Not)!
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…
Equifax Announces Affiliation with Fannie. Good News?
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…
Differences Between Fannie Mae and FHA Appraisal Policies
Appraisers, Underwriters, and Quality Control staff that are involved with the processing and/or review of Fannie Mae and HUD/FHA loan transactions need to be cognizant of the differences between Fannie Mae & FHA appraisal policies on various topics. Outlined below are five examples of these differences: Using a previous appraisal on a subsequent refinance transaction Fannie Mae will allow a…