Upcoming Changes to Freddie's Credit Requirements

These credit changes will be published in the November Guide Bulletin and will be will be effective for Freddie Mac settlements on and after February 2, 2009:

Eliminate purchases of all mortgages originated with stated income and/or stated assets, including borrower selected programs, lender-branded and marketed programs, and system-selected programs such as Loan Prospector® Accept Plus.

Establish a maximum debt-to-income ratio of 45 percent for all mortgages they purchase, except for Streamlined Refinance Mortgages.

Even though this change isn't happening at Freddie Mac until February, I expect lenders to change their guidelines well before that. Fannie Mae has not made an announcement like this yet, but I would not be surprised if it happens soon after.