Credit Score

Credit Score - Fannie Mae to Tighten Lending Standards: Report - Yahoo! News

Fannie Mae to tighten lending standards: report – Yahoo! News

WASHINGTON (Reuters) –
Fannie Mae plans to raise minimum credit score requirements next month and limit the amount of overall debt that borrowers can carry relative to their incomes, The Washington Post reported on Thursday.

Starting December 12, the automated system that the government-controlled mortgage finance company uses to approve loans will reject borrowers who have at least a 20 percent down payment but whose credit scores fall below 620 out of 850, the newspaper reported. Previously, the cut-off was 580.

Also, for borrowers with a 20 percent down payment, no more than 45 percent of their gross monthly income can go toward paying debts, the newspaper said.

A Fannie Mae spokesman told the newspaper that the limits reflect the company's recent experience.

Loans to people with credit scores below 620 fell seriously behind at a rate approximately nine times higher than other loans purchased in the same period, Fannie Mae spokesman Brian Faith said. Loans taken out by borrowers with lots of debt also suffer higher levels of serious delinquency, he said.

“It's not enough to help borrowers buy a home — we must also ensure that they can stay in the home over the long term,” Faith said in a statement to The Washington Post.

Back with more news for you today. It’s amazing how much good information there is on this stuff out there if you know where to look. Three in particular that I found really valuable were…

Keeping your credit score healthy post-holidays

If you've made homebuying a New Year's resolution, you'll want to keep your credit score from slipping over the holidays. FICO, the credit-score company … Read More…

Smart Shopper: Don't pay to clean up your credit score

There are tons of websites that offer some type of free credit information and then lure you into paying for your credit score. Don't fall for it because … Read More…

Auto Loan Refinance – Save Money on a Loan in Detroit, Michigan

One of the most important aspects when getting a low interest rate is having a very good credit score. If your credit score is currently below 650 you are … Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.