Finally – Fannie Mae & Freddie Mac See The Light – Good Morning. Hopefully everyone was able to avoid the fire yesterday here in North County. I know here where I live in San Elijo Hills the fire at one point looked like it was going to burn into my area. Having lived through the 2003 and then 2007 fires, I was eerily reminded of those events. Luckily the consorted efforts by the Fire Dept and Law enforcement keep
everyone safe – Thank you !!!
I wanted to share a brief update as to what happened yesterday relating to a potential change in Mortgage Guidelines. As we know, the lending arena these days is tough at best. Getting a mortgage can prove to be a daunting task. If you’re self-employed and or maybe you’re a first-time homebuyer, it’s a tough road to get a new mortgage. You have to show multiple years of income. Proof of a seasoned down payment and near perfect credit amongst the laundry list of conditions will be facing to qualify. Long gone are the days of 100% LTV Stated loans – or the now toxic ‘neg-am Loan” that so many Banks pushed out in 200-07. These days it’s 20% down and 720 plus FICO Score requirements (conforming
products). Throw in a $417,000.00 conforming loan cap, and it gets even worse.
However there is good news.
The regulator of Fannie Mae and Freddie Mac on Tuesday laid out new policies that could make it easier for many Americans to obtain mortgages, in part by holding off on any reduction in the size of mortgages the two firms can buy.
The Federal Housing Finance Agency Director said the two government-controlled firms would ease standards that govern when banks must buy back faulty loans from the two mortgage finance giants, which could also help loosen the credit taps. FHFA will not use its authority as conservator to reduce current loan limits. This decision is motivated by concerns about how such a reduction could adversely impact the health of the current housing finance market. What this means for San Diego homeowners is that we may start to see desperately needed loan programs. Living in a high-cost area where the median home price is double the National average, we need higher Loan-to-Value and Stated Loan Products. The other benefit is that we will start to see improved first-time buyer programs and alternative document products aimed at the self-employed.