FHFA ANNOUNCES DRAMATIC EASING OF MORTGAGE STANDARDS

FHFA ANNOUNCES DRAMATIC EASING OF MORTGAGE STANDARDS

The Federal Housing Finance Agency (FHFA) recently announced plans to expand homebuyer access to mortgages by loosening up lending standards.FHFA will release guidelines in the coming weeks to allow increased lending to borrowers with down payments as low as 3 percent. FHFA, which regulates Fannie Mae and Freddie Mac, also will help lenders who sell loans to the mortgage giants by easing standards on borrowers who don't have perfect credit profiles.The move is expected to help open up the credit box to first-time buyers, self-employed borrowers, borrowers who have had recent job switches and borrowers who faced financial hardship during the recession.Addressing such issues is critical to ensuring that there is liquidity in the housing-finance market and providing access to credit for borrowers.Fannie and Freddie would not force repurchases from lenders of mortgages that are later found to have minor flaws in them, as long as borrowers have kept up with their mortgage payments for 36 months. Lenders wouldn't be forced to buy back bad loans if flaws were later discovered in the reporting of borrowers' finances, debt loads and down payments -- as long as the borrowers would have qualified for the loans had the information been accurate.FHFA said it will clarify to lenders when it will force buy-back loans that were issued based on inaccurate information. FHFA acknowledges that it failed to providelenders with enough clarity in the past. That caused lenders to get cautious with lending after facing a flood of high-dollar settlements from loans they issued that later turned sour.Remember, when buying or selling a home, use a professional Realtor who can take you through the process.The Stark County Association of Realtors serves as the voice for real estate in Stark and Carroll counties. For more information, or for a complete listing of Realtor professionals and affiliate members, visit www.starkrealtors.com.
Source:the-review.com 
By DAVE MALTESE



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Phone: 941-400-0181
Dated: November 7th 2014
Views: 461
About Deidre: Deidre is a full-time Multi-Million Dollar producer working with home-buyers, sellers, and investors...

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