FHFA's Dramatic Easing of Mortgage Standards
DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 21, 2014
Federal Housing Finance Agency Director Mel Watt on Monday announced plans to expand home buyers' access to mortgages by loosening up lending standards.
During the Mortgage Bankers Association's annual conference, Watt said FHFA will release guidelines "in the coming weeks" to allow increased lending to borrowers with down payments as low as 3 percent. FHFA, which regulates Fannie Mae and Freddie Mac, also will help lenders who sell loans to the mortgage giants by easing standards on borrowers who don't have perfect credit profiles. The move is expected to help open up the credit box to first-time buyers, self-employed borrowers, borrowers who have had…