Good news for the mortgage industry - Higher Standards! Just so happens to be my "motto!"
Fannie Mae has established Higher Standards within their guidelines:
- Higher DTI Standards - Less than 45%
- Higher credit Standards - 620 minimum
- Higher PMI
So am I telling you that I am excited about making it harder to obtain a loan therefore making less opportunity for me to make $$$? Absolutely!
There will always be people that need a mortgage. I am willing to sacrifice production for trust and respect both of which were lost over the past few years. Mortgage Loan Originators took a lot of blame and rightfully so for contributing to the financial mess we are all in.
Of all the things the government does to waste our money, regulation is not one of them. It is one of about three things it does very well. Think about our water, food, construction materials, automobiles, airplanes and kids toys. In these cases the government does a good job keeping us safe and I am glad to hear that they are now paying attention to the mortgage industry to keep Americans safe.
My reference to Higher Standards is not a reflection of my companies more stringent qualifications to obtain a loan. I do however hold myself to higher standards both personally and within my career. I don't want to shoot myself in the foot here, I just want to update everyone on the new rules and support another step towards earning back the trust of the people we all work with.
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