Sunday, February 15, 2009
Fannie Mae - Still Out Of Control
From Bloomberg: Fannie Mae to Loosen Rules for Home-Loan Refinancing
Congress learned nothing, it’s business as usual at Fannie Mac. Guaranteed to bring economic disaster!
HAVE THEY NOT LEARNED ANYTHING?
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.
Fannie Mae’s changes will include allowing borrowers seeking to take out a loan that is 80 percent of the value of the home or less to qualify for refinancing with credit scores below its 580 minimum. Consumer credit scores as measured by Fair Isaac Corp. range from 300 to 850.
Easing Documentation
The program also lowers income-documentation requirements to one current pay stub, according to the notice.
Where are the co-conspiritors Barney Frank and Chris Dodd that are supposed to be regulating this stuff? Insanity is doing the same thing over and over and expecting different results.
If you can’t meet the standard for a home loan then there is a term for you, it’s called “renter.”
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