HUGE news for the mortgage industry. Since D-Day last August programs have been taken away daily & new restrictions are constantly being placed on what we do have.

One big restriction was placed by Fannie Mae stating in automated underwriting findings 'home may be located in a declining market & will be subject to additional 5% LTV reduction'.

This meant no more 100% financing & if loan was a conforming 'normal' loan for 5% down payment that borrower was now forced to put down 10%! Being that I do a lot of work in the Ypsilanti, MI market area this has made it virtually impossible to get many borrowers into a home of their own without doing a government loan.

And while government loans definitely 'have their place' sometimes their restrictions make it impossible to use those as well.

This 'lifting of the declining market' guideline by Fannie Mae states that Fannie Mae will purchase loans from investors (Wells Fargo, Countrywide, Citi, Etc) with only a 5% down payment now or what loan program guidelines allow.

We still face the challenges that the PMI companies have their own declining market guidelines!

That's a whole other topic!  Some let you do 5% down if your score is over 720, some over 680, some can do Lender Paid PMI others can't & list of restrictive guidelines goes on.

Used to be we shopped for 'creative mortgages' now we shop for credit score and down payment.  At least we are seeing some 'positive' changes in the industry.