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