Fannie Mae's new "Loan Quality Initiative" went into effect on June 1, 2010. This means that loans may be at risk for some buyers. Here's what you need to know to keep your deals from blowing up right before closing:
As of June 1, lenders who originate mortgages are being advised to pull a second credit report on many transactions just before the loan closes. By reviewing a second credit report, lenders can find out whether other creditors have recently requested information about the mortgage applicant, whether new debt has been acquired raising their debt-to-income ratio, or a drop in their credit score below the minimum required for the their loan program. If the second credit report includes any negative changes, the result could be a higher interest rate and/or fees, or even worse, the loan could be denied altogether!
Don't let this happen to your homebuyers!!! For more information on how to prevent this, please contact me.
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