WASHINGTON –A new month means new changes for mortgage borrowers — and
those changes could make your dream of owning a home even easier.
Since the nation’s economic collapse because of permissive lending practices,
home mortgage rules have tightened so dramatically former Federal Reserve Board
Chairman Ben Bernanke made headlines in October when he was denied refinancing
on his DC townhouse. Well, the pendulum is about to swing in the other
direction.
The Wall Street Journal reports new guidelines will relax lending standards,
possibly creating hundreds of thousands of new mortgages.
Among the changes taking effect December 1, lenders are expected to expand the
number of borrowers eligible for loans despite credit card history problems due
to one-time events such as a big job loss or medical bill.
There are other changes in the lending guidelines by Fannie Mae and Freddie Mac.
Lenders say there will be a quicker application turnaround and the effects will
start to be seen in a few weeks. Right now, it takes about two and a half
months to apply and receive a loan. However, some banks say they will keep the
tighter lending standards because they fear another regulatory change.
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