Fannie Mae Guideline Changes

Fannie Mae just released their notes on DU (Desktop Underwriter) that will be updated on December 12th, 2009.  Banks/lenders may make these updates prior to that date.  The most important of the changes is that the maximum allowed debt to income ratio will be 45% with flexibilities offered up to 50% for certain loans with strong compensating factors.  Compensating factors consist of credit score, assets/reserves, etc. 

This will effect who can get approved for a loan.  It is a change that will be good for the industry but will have a short term negative effect.  I will keep you posted as I learn more. 

For all the changes click on the following link

https://www.efanniemae.com/sf/guides/duguides/pdf/current/rndodu80.pdf