Invest in Real Estate:Fannie Mae Loosens Lending Standards
Article Summary:
Fannie Mae has announced they are loosening the standards to try to allow more homeowners to refinance. While I personally think that this is a little nuts right now, it probably comes from from the
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Isn’t the loosening of standards what caused the trouble we are in originally?
Fannie Mae has announced they are loosening the standards to try to allow more homeowners to refinance. While I personally think that this is a little nuts right now, it probably comes from from the two different points of view.
I think that housing is getting close to it’s natural recovery. Others think we are on the precipice of a total meltdown. If a meltdown of the housing inventory is what they are trying to avoid, then this stimulus from Fannie Mae makes sense.
If we are not, too much stimulation may cause even more problems down the road.
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. Bloomberg.com
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