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  • November 10, 2009 at 10:27 PM #16635
    afx114
    Participant

    On December 18th, Fannie Mae is instituting a maximum 45% debt-to-income ratio for all loans.

    https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0835.pdf (PDF)

    Previously they would do upwards of 65%.

    I’m curious to know piggie opinions on how this will affect the buyer pool, and how the shrinking of said pool will affect prices.

    November 10, 2009 at 11:03 PM #480419
    Effective Demand
    Participant

    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.

    November 10, 2009 at 11:03 PM #480586
    Effective Demand
    Participant

    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.

    November 10, 2009 at 11:03 PM #480948
    Effective Demand
    Participant

    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.

    November 10, 2009 at 11:03 PM #481030
    Effective Demand
    Participant

    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.

    November 10, 2009 at 11:03 PM #481251
    Effective Demand
    Participant

    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.

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