Fannie Mae Tightens Rules For Mortgages |
| Wall Street Journal - Apr 2, 2008 |
Fannie Mae announced a new round of tightening in its standards for home mortgages it buys or guarantees.
The government-sponsored provider of funding for home loans told lenders Monday it will require a minimum credit score of 580 for most loans it buys on an individual basis. Credit scores, which range from 300 to 850, are designed to measure borrowers' likelihood of repaying loans. In the past, Fannie had no minimum score. The company said it will still acquire loans with lower credit scores in certain circumstances.
Among other changes announced to lenders, Fannie also said it will increase the period needed for borrowers to "re-establish" their credit history after a foreclosure to five years from four years. Fannie said it would allow shorter recovery periods for borrowers with "documented extenuating circumstances" that caused the foreclosure.
Read Full Article from Wall Street Journal
- Posted: 2008-04-02 08:38:18
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