fannie mae: Biden's Conventional Loan Price Changes
- 04/21/23 10:44 AM
Changes to pricing for conventional loans are in the news as the proposed changes are set to take place in May. The reality is that these changes have already taken place, because they are effective for loans delivered to Fannie Mae or Freddie Mac in May. Loans closing in the next couple weeks will be the first to be delivered with the updated pricing, but due to the nature of a purchase contract period, many of these loans have been locked over the last 3-4 weeks. It's a bit surprising to see the uproar today about this topic, as the news of this change came out … (50 comments)
A lot of people for a lot of years have made a lot of money in the mortgage and real estate industries without relying too much on technology. "All I need are my relationships!" is a common refrain. "This is a people business!" is another. And while both are true, those not using modern technology in their 'people businesses' are about to get left behind.
Back in 2018 I first wrote about Day One Certainty (D1C) and how it can improve the loan process for customers. To summarize, D1C mitigates risk for a lender - … (18 comments)
Recently, there's been a lot of talk about Fannie Mae's increasing debt-to-income threshold, along with changes to credit reporting that should reduce the number of folks effected by judgments and liens when it comes to a mortgage application. This is being promoted as big news across a wide spectrum of housing news outlets, and for good reason - from 2008 through 2015, there was little, if any, positive news coming from the mortgage world. Loans were getting tougher to get, guidelines were stiff, many people were denied, and the stack of documentation … (18 comments)
Fannie Mae has announced some changes to their conventional lending guidelines, effective immediately. This is a welcome announcement as the changes make underwriting guidelines more clear, and in some cases more lenient. They also improve pricing for certain borrowers. Have you had buyers turned down over the past 6-12 months because of these guidelines? If so, it's time to pick up the phone and see if they can qualify for a new home loan.
Keep in mind, these are Fannie Mae changes, and not lender-specific changes. That means if your lender is not Agency-direct, you may … (22 comments)
As expected, Fannie Mae & Freddie Mac have announced that conventional loan limits are set to increase as of January 1, 2017. Since rate increases on these programs are tied to median home values, this increase was expected, and is finally some relief for people buying in higher price ranges. While not a drastic change, the increases will be helpful to people buying in higher-end areas of most markets.
For real estate agents, it's important to note that lenders may originate loans based on the new loan limits immediately, however loans with the … (2 comments)
Loan limits for conventional loans will be increased across several states and counties in an effort to keep financing options on pace with home values. While the list of counties where increases will take place is not too extensive (only 5 states will see increases), Colorado and Tennessee will each see large areas with higher conventional loan limits than were available in 2015.
Here's the complete list:
California 2016 loan limit increases (only counties with an increase are shown)
Monterey County - $529,000 (currently $502,550) Napa County - $625,500 (currently $615,250) San Diego County - $580,750 (currently $562,350) Sonoma County - … (33 comments)
Attention! Attention! This one goes out to the "Getting a loan is nearly impossible these days" crowd. Fannie Mae has recently taken a huge step to making things easier, helping to reduce barriers in home buying, and allowing us lenders to treat people less like criminals trying to scam us and more like what most people really are - good, hard working folks trying to achieve the American dream.
Fannie Mae often tweaks their program guidelines, and despite having a reputation of tough underwriting standards, does a pretty good job of keeping their product offerings … (19 comments)
This one isn't a huge deal or a game changer, but something those of us in the lending world should still know about. Effective today, Fannie Mae is changing their acceptable calculation for student loans when a payment cannot be verified.
Oftentimes when a credit report is pulled and contains student loans, there is no monthly payment listed on the credit report as there is with other types of revolving and installment debts. This is especially true and frequent of loans in deferment.
Fannie Mae has announced it is now accepting applications and funding the long-awaited 3% down conventional loan. As with any announcement, they let you know what the program is, but it's up to us to dig in for the details - that's what I'm here for!
- The 3% down program can be used for the purchase of a single family home, condo, or COOP with the 30 year fixed rate program only. (Manufactured homes are not eligible, and ARM loans cannot be used)
There is a new version of Fannie Mae's automated underwriting system (AUS) coming out, and as of December 15 all new loan files packaged for Fannie Mae will be run through this new system (version 9.2).
While most guidelines remain in effect, and this shouldn't really change many people's plans, there are a couple of changes worth noting.
Cash-out LTV reduction
For primary residences, currently borrowers can do a cash-out refinance up to 85% LTV for a new fixed rate mortgage (75% for an ARM) on a … (9 comments)
Changes to pricing for conventional loans are in the news as the proposed changes are set to take place in May. The reality is that these changes have already taken place, because they are effective for loans delivered to Fannie Mae or Freddie Mac in May. Loans closing in the next couple weeks will be the first to be delivered with the updated pricing, but due to the nature of a purchase contract period, many of these loans have been locked over the last 3-4 weeks. 
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