It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Fannie Mae will drop some credit-score requirements, reduce income-documentation standards and waive the need for appraisals in some cases, according to a notice yesterday to lenders posted on the Washington-based company’s Web site. The changes apply to loans that the company owns or guarantees.
The company, which accounts for more than 40 percent of the $12 trillion in U.S. residential mortgage debt, is seeking to break a “logjam” in refinancing and allow more homeowners to take advantage of near-record low interest rates, according to Brian Faith, a Fannie Mae spokesman.
The changes apply to loans that the company owns or guarantees.
Originally posted by amatrine
We have an FHA loan at 6.5 percent. We just got a call from the bank, on the new program where they want us to refinance to a 5 percent.
Well, we looked at the paperwork, and guess what. We figured out why the banks are pushing it.
They want to finance the original loan amount. Not the current balance.
So the money we paid off last year would not matter. The loan amount which now should be 95k, they want to take back to 98 k. You also have to repay the
title fees and tax. So we said we will pass. Not worth the small amount we would save every month.