Fannie Mae 2017 UPDATE – The Latest on Underwriting Guidelines

How’s it going everyone? Matt Leighton, welcome back to another real
estate video. Today we have a Fannie Mae update for you. 2017. Big stuff happening that I don’t know as much
as Sean Glennon knows. He is the VP Home Savings and Trust Mortgage. So guys, 2017 you know if you’re on the fence
about buying a house, I get it, rent is expensive, maybe, probably, but there’s a lot of updates
going on in 2017 that maybe you’re not aware of so Sean why don’t you start us off. Let the people know just at a broad overview
kind of what’s going on recently. Yeah I won’t bore you guys with how the sausage
is made or getting into specific underwriting guidelines. And the message is that we went through a
mortgage crisis about 10 years ago in which underwriting guidelines were much too loose. People were getting loans that did not really
deserve them or it was not a good business decision to be giving it to them. So the pendulum swung very hard the other
way and underwriting guidelines became much more difficult to qualify for a loan and maybe
swung a little too far. But that’s what happens when you go through
periods like that. What’s happening right now is that I don’t
want to say the pendulum is swinging back in the other direction but it’s starting to
loosen up, correct itself a little bit. So we’ve gone through an eight, nine-year
period where loans have performed very well so they’re seeing if they can ease up guidelines
a little bit. The message to take away from this is Fannie
Mae has actually rolled out a brand new set of underwriting guidelines that do make it
a little easier and do allow for borrowers who may have had a lot of student loan debt,
may have been bogged down by alimony debt, may be starting a new job. Before you would have had to waited to start
a new job, now as long as you’re within 90 days and have an employment letter you can
start. Debt-to-income ratios that’s what really drives
what you can qualify for. They’ve loosened that up. If you’ve been in a position before where
you’ve thought about buying a house or even gone down the road of getting pre-qualified. And due to debt, due to debt-to-income ratios. Due to moving jobs, if any of those reasons
held you back or didn’t allow you to qualify for as much as you were hoping to be qualified
for, it might be time to give my man Matt a call and myself to see if your situation
has changed. And these types of things are affecting a
lot of people. Debt-to-income is probably the first thing
out there. High debt, alimony, it’s not some niche product
that where a couple lenders got together and they have this new program. It’s like DTI, if that changes than a whole
bunch of people can become eligible for a loan that maybe you didn’t think you were
eligible for in the first place. You bring up some great points. My question is, “How do people even find out
about these updates”, they have four apps that show different houses that all have the
same data, they have Redfin, Zillow, they have HomeSnap. I’m guessing they don’t have four mortgage
applications, I’m guessing they don’t go to to find out the latest news,
so if you want to learn more about the latest guidelines, how do we find out about these
things? I don’t know if a Fannie Mae Underwriting
Guideline app would be a best seller in the App Store. You’re not going to see it on the front headlines
of CNN or Fox News or anything like that so I would just encourage you to give myself
a call or whatever lender you’re working with. We keep talking about all these terms. Debt-to-income ratio. That’s determining your income versus your
current debt and that percentage drives what your purchasing power is. So now all of a sudden if they’re allowing
you to go higher in your debt-to-income ratios. And they’re looking a debt differently. Student debt and alimony specifically, all
of a sudden your window for what you can allow for your mortgage payments become much bigger. Again, I would encourage anyone who has gone
down this road and maybe not been pleased with the outcome of what they were approved
for to re-evaluate your options because it may have greatly improved. And you know for those that have been watching
my videos I’m a big proponent of buying property when it’s right for you. Not you know buying property because of who
the President is, not buying property because of interest rates. However, if there is a significant enough
shift where on the bottom line it makes sense to move forward and you know you’re going
to be living in the same place for the next seven years, that might be worth a five minute
conversation with the lender you were in touch with 3 years ago when you had the better job
or when you had less debt. So it’s not something where you need to buy
right now, it’s something that we’re saying ‘hey, things have changed since you last spoke
with your lender, it might be worth it to pick up the phone and have a conversation.’ So with that being said, hope this was a quick
hitter overview on Fannie Mae update 2017. I’ll list and link Sean’s contact information
in the description below. Thank you very much for watching. Until next time, create a productive day. Take care.

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