Fannie Mae to Change Loan Application Requirements June 1

By
Managing Real Estate Broker with The Cyndi Nelson Team at MVP Realty Group

loanAs we near June 1, Fannie Mae will change loan application requirements for borrowers and lenders, including those in our Olympia area. These changes are all part of the Fannie Mae double-check part of the Loan-Quality Initiative Plan.

Fannie Mae will require that lenders do a second credit report on borrowers prior to closing. This quality control will let lenders know if borrowers obtained or looked into any new type of debt from the time of application to the closing.

The loans can include cars, appliances, furniture and credit cards. If the lender feels the borrower has accumulated debt in this time period that may affect the home loan, further research will be needed. The credit check will come from a source other than the one received from the original agency.

This change is going to affect the borrower in a couple of ways. It could make them ineligible for the home loan if the lender feels they now have more debt than their monthly budget can handle. It also opens the door for more of their information to be sold to a third party.

What many borrowers do not realize is that not only is the lender pulling their credit report, but they are also allowing credit borrowers to sell their information to third parties. Many agents and brokers will remind borrowers to sign up at the "Do Not Call" list. They can also sign up for "Opt-Out Prescreen" which stops the four credit bureaus (Equifax, Experian, Innovis, and TransUnion) from selling information for five years.

Those applying for a loan after June 1 should be sure they have not applied or looked into any large amounts of credit, or they may lose the chance at a new home mortgage.

For more information on this new loan process, or if you want to learn more about owning a home in our the area, give me a call  or visit my Exit Realty Boardwalk site for a look at the best properties in Olympia, Lacey, Shelton, Tumwater, Dupont, Yelm, Rainier, Rochester. I can help you with finding a great home and obtaining loan information. 


 

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Call Cyndi Nelson  at  (360) 701- 4223. 

 

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Rainmaker
808,819
Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Cyndi;

Thank you for the great post, I do appreciate you sharing.

May 24, 2010 02:49 PM #1
Rainer
94,815
Billi Evans
Murney Associates - Springfield, MO

Once again it is our job to educate our buyers. Thanks for a post I can use to help do so.

May 24, 2010 02:58 PM #2
Rainmaker
664,388
Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

Good information, thanks for posting.

May 24, 2010 03:01 PM #3
Rainer
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Cyndi Nelson
The Cyndi Nelson Team at MVP Realty Group - Olympia, WA
ABR, CRS, SRES, GREEN

Thanks for your comments., Anthony, Billi, & Kathy. This new rule could influence buyer behavior while waiting for closing. It is crucial to get the  word out!

May 25, 2010 03:20 AM #4
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Rainer
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Cyndi Nelson

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