Fannie Mae, Freddie Mac and USDA Upcoming Rule Changes

Mortgage guideline changes coming in the fall of 2012 will hopefully create more potentional homebuyers.

Slowly but surely, they are figuring out that the underwriting guidelines are too restrictive, but they aren’t going far enough. There are hundreds of thousands of potential home buyers on the sidelines, that want to buy or refinance, but can’t because of over restrictions.

I meet with clients that were referred to me recently. They had to file bankruptcy in 2008. They were paying two mortgages, when he lost his job, because his company went out of business. He was a highly paid executive, so finding a job was not easy to find. He was making $100,000 per year and eventually accepted another job for half the pay. With his new income, they just couldn’t keep up with the two mortgages,

They filed for bankruptcy, moved out of their home and rented a smaller home, which they have been in for nearly three years. So, what is the problem, right?

The problem is, that even though the original mortgages were included in the bankruptcy, the home is still in the foreclosure process. You would think this can’t happen, well it actually happens a lot. There are tens of thousands of folks in the same boat. Most of them want to be homeowners again, but can’t.

FHA guidelines say, that someone can apply for a mortgage 24 months after a bankruptcy discharge, have re-established credit and 36 months after the completion for the foreclosure or short sale. For these clients, they can’t become a homeowner until 36 months after the completion of the foreclosure. They have attempted to find out what is going one, no one can tell them anything.

So far there is no light at the end of this tunnel for all those in this situation. It is time for these regulations to correct this problem, as these folks want to be homeowners again, but can’t.

There are literally millions of folk that want to be homeowners, but because of underwriting guidelines, can’t buy a home and would make outstanding neighbors.

Check out this article for the guideline changes:

Stay Tuned for Big Rule Changes Coming This Fall!


This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

concerned September 26, 2012 at 02:10 AM
An interesting article, yet no info on how the rules are being changed. Typical no go out and get the info to the public, isn't that a reporters job? Why bother with this article until you have facts. Please, stop reporting when you haven't done your job. And why all the Obama ads? Hmmmm. Here's some reporting for people who are really interested in real news. http://washingtonexaminer.com/obama#.UFt_PpG9KSM
Jim G. September 26, 2012 at 12:57 PM
Hmm. People who don't know the difference between a blog and a genuine news article, and complain that a blog article doesn't meet journalism standards but then cite another blog as some kind of verified fact... no wonder we're becoming known as the Post-Truth Era.
Think Positive September 26, 2012 at 06:46 PM
"Yes, the kitchen is a bit small, but with a mortgage like this you won't do much cooking anyway." "If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem."
RobertM September 26, 2012 at 07:54 PM
Bravo, Jim G. Couldn't have said it better.


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