Other than one, I can not think of any actual lender underwriting guidelines that have looseneed up in the last 2-3 years. In January 2010, we did launch our FHA 580-639 FICO program. Since there is no Secondary Market desire for those loans, we have to sell those mortgages direct to Ginnie Mae.
This year alone, HUD increased its MI premiums on FHA mortgage. They are also now requiring P&L's for self employed borrowers. Though initially delayed, HUD will be requiring more collection accounts to be paid in full prior to a closing. Last year, USDA implemented monthly MI on its loans.
For conventional mortgages, the story is different. The MI companies have in fact expanded their underwriting guidelines. Unlike in 2009, MI companies are once again insuring Second Homes and they are going to higher LTV's on Primary Residences. Now that many MSA's have been eliminated as being a "Declining Market", that has expanded the MI availabilty in many markets.
I do believe a lot of the perceived "improvement" is due to buyers, and especially real estate agents, being more knowledgeable about today's lending standards. Better education of the buyers on what to expect does greatly help the transaction move along.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
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