Another Underwriting Requirement

It doesn't make any difference if you are planning to purchase in the greater Prescott AZ area or not----Here's a new wrinkle to add to all of the other things buyers have to deal with to get a loan approved and closed. FNMA, as of June 1, 2010 is implementing the Loan Quality Initiative, LQI, to help "capture critical loan data earlier in the process and validating it before, during and immediately after loan delivery." The purpose of this requirement is to verify that the borrowers are in compliance with underwriting guidelines from the time of application through loan closing and even beyond. It is expected to discover if the borrower has or is making other purchases that would affect them qualifying for the mortgage by increasing their debt-to-income ratio.