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Credit standards tighter than ever for Fannie Mae and Freddie Mac loans

February 8, 2011

I rarely do reprints, but I recently found a tremendous article about the new credit standards for Fannie Mae and Freddie Mac loans.  The net takeaway of the article is that the standards for approval on credit and the amount of scrutiny involved in evaluation of a client’s credit history are extremely high.  Management of credit has become more and more important prior to and during the application process.

From the article:

New credit transparency standards imposed on lenders by mortgage giants Freddie Mac and Fannie Mae could affect your mortgage deal. As of Feb. 1, Freddie Mac began requiring lenders to dig back 120 days into your credit bureau files to detect any inquiries — signs of your applying for credit anywhere else — and then to check out whether any applications were approved. If they resulted in significant new debts, your lender might have to revise the terms or the rate you’re being offered.

Read entire article

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