FNMA 09-19 Amends Guides 09-01-09
Remember the days when getting a mortgage was fairly cut and dry – 28 to 40% of your monthly income for housing and 36 to 50% for housing and debts. You had to pay your bills on time without late payments and the property needed to appraise for at least the purchase price. Today, what was a checks and balance process, is now volumes outlining the every which ways, whats and wherefores. 
Fannie Mae after a comprehensive review of underwriting and eligibility policies that focused on current market conditions updated several policies. Click on the picture for the complete FNMA announcement and here are some of the changes:
- The maximum age of Credit Documents reduced from 120 days to 90 days
- Tip Income can be considered with a 2 year history averaged with will in all probability continued
- Trailing secondary wage earner income has been eliminated
- Verbal Verification of Employment is required for all borrowers within 10 calendar days for employment income & 30 days for self-employment income of the closing date
- Value of assets used as reserves – Stocks, bonds & mutual funds – 70% of value reduced from 100% and Retirement accounts – 60% of vested value reduced from 70%
The heart of these changes stem from “Creative Financing” products of the past few years thus preventing defaulting loans and fraud prevention. Stricter guidelines will lead to a more secure housing market. Be an informed buyer – have questions? – ASK!
