Note, that change was implemented back in 2008. Also note DU can (and does from my observation) exceed that maximum. Also FHA is still extremely loose and there are discussions on the mortgage broker boards of exceeding 50%+ back end DTI.
I saw a discussion this week regarding Wells restricting DTI from 50% to 45% and Chase was coming out with another restriction (I believe it was min FICO related) which I can’t remember right now. But as long as Uncle Sugar allows the loose underwriting and foisting the risk off on the taxpayer it won’t matter much.
