Articles Tagged with ''Debt-to-income ratio''

Latest FHA shift to mitigate risks may shut out some homebuyers

Recent changes to TOTAL Mortgage Scorecard have some lenders worrying they won't close
Last week, the Federal Housing Administration took steps to mitigate risks to its single-family portfolio, announcing updates to its TOTAL Mortgage Scorecard that may flag some loans for manual underwriting. Chatter among members of the lending community suggests a number of originators are unhappy about the changes, fearing that the end result may be that some of their borrowers will be shut out of FHA financing.
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Fannie Mae DTI increase could add 95,000 borrowers each year

Disproportionate share to go to Latino and black families
Earlier this year, Fannie Mae announced it was raising its debt-to-income ratio from 45% to 50%, but how many consumers will see these effects? A new study from the Urban Institute explains this ease in credit standards could allow for just under 100,000 new originations each year.
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Making mortgage lemons

Tighter underwriting doesn't make up for strong oversight...it just limits the market
Requiring very high credit scores may reduce the risk of default, but it doesn’t prevent us from making a mortgage lemon and only serves to dramatically reduce the pool of eligible borrowers, writes Mark Fleming, chief economist for CoreLogic.
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