Fannie Mae Loan Quality Initive

In effort to cut down on the loan buy backs, Fanny Ma has created the Loan Qualify Initative.

This means the lender may pull a 2nd credit report just before the closing of the loan, just to insure that you do not have any additional debt that has been applied. They may also have to perform additional verification of occupancy plans for the property. They may also may verify Social security and Taxpayer Id Numbers.



Eligibility matrix, which Fannie mae may be making changes to the Fico score requirements and LTV's. This is to take effect June 19, 2010 with the DU 8.1 upgrade





Du 8.1 Arm Qualifying Rate: To limit the payment shock for ARM borrowers, Fannie is changing the rate at which borrowers must be qualified. If you are taking out a ARM with a fixed rate period of 5 years or less, lenders must use the note rate +2 or the fully indexed rate





Interest Only program the DU 8.1: What are the changes, first this is what is not be eligible for delivery to Fannie.



Cash out refinances

Flexible Mortgages

My Community Mortgage Loans

Investment properties

2-4 units



The Minimum Representative credit score is 720



The borrower must have a minimum reserve of 24 months

The biggest Lender's say, we will not pay down your mortgage

The two biggest owners of mortgages say I will not lower the principle on the mortgages that they back. these two lender are controlled by the Federal government feels that they do not need to lower the principle of their loans, instead they have chosen to opt for interest rates reductions and term extensions when modifying their loans.