Melbourne Area Blog

Effective June 1, 2010 Fannie Mae has implemented new lender mandates that will effect your qualifying for a mortgage. Most lenders are sure to follow suit as Fannie Mae backs 90% of all mortgages.

These are the highlights supplied by Rismedia:

"The intent of this initiative is to assure that all applicant information is disclosed and is honest and accurate as of the moment of closing. Lenders will now be required to re-pull credit report information just prior to closing, re-verify employment, validate Social Security numbers, verify intent to occupy and verify that all parties to the transaction have been checked against the national “excluded party” list, which is managed by HUD and by the General Services Administration. Changes in any of these factors are likely to result in a re-underwrite, the need for additional documentation, or suspension of loan closing."

"Additional credit or increased balances that change the debt-to-income ratio more than 2% (or less if it now exceeds guidelines) will require the loan to be suspended and re-submitted to underwriting."

What this means is that once you apply for a mortgage it is important that you do not apply for any other new credit or make major purchases on your credit cards until after closing.