Fannie Mae and Freddie Mac have made some major changes effective 6-1-08.
- LTV’s have been lowered
- New Underwriting and Transmittal Summary has been designed
- Deferred student loans will be counted in the debt ratio
- FNMA updated their automated system to 7.0 Version
- There is a 580 minimum credit score rule
- Eligibility Changes for Manually Underwritten loans
- Retired Timely Payment Rewards program
- Foreclosure policy changed requiring 5 years after foreclosure for 90% LTV and 7 years for higher LTV
- MI charts have changed with some MI companies adding additional restrictions
- No cash out available in declining markets
- Definition of declining market may be decided at the discretion of the appraiser if property in declining market.
- FNMA developed a new Home Saver Advance to help delinquent loan customers bring their mortgage current.
For more on these topics, join our free ’Professional’s Club’. Linda is working on an update to cover the key points and give access to links that will give detailed information. Stay informed. www.mtgtna.com
Tags: DU 7.0, fannie mae changes, freddie mac changes, home saver advance
