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NEW CHANGES COMING SOON

September 2nd, 2016

COMING IN THE NEXT FEW WEEKS ARE SEVERAL IMPORTANT CHANGES TO THE MORTGAGE LOAN INDUSTRY:                                                                                                                        1) FANNIE MAE WILL BE INTRODUCING THE USE OF "TRENDED" CREDIT. THIS NEW METHOD WILL LOOK AT THE USE OF CREDIT AND THE BORROWER'S ACTION TO PAY DOWN DEBTS VERSUS OPENING MORE DEBT AND INCREASING THE BALANCES IN RELATION TO THE HIGH CREDIT LIMITS ESTABLISHED. THIS NEW APPROACH WILL ALLOW BORROWERS TO POTENTIALLY GET APPROVED THRU FANNIE MAE, WHERE THEIR LACK OF TRADELINES AND LOWER CREDIT SCORES WOULD HAVE PROHIBITED APPROVAL BEFORE. LIKEWISE, BORROWERS WITH HIGH CREDIT SCORES MAY BE DENIED DUE TO THEIR OVER USE OF CREDIT AND THEIR INCREASING BALANCES. THIS NEW APPROACH WILL BE SOMETHING TO WATCH AS IT COULD CAUSE MAJOR SHAKEUPS IN THE LENDING INDUSTRY. FREDDIE MAC HAS DECIDED NOT TO MAKE THIS CHANGE, AT LEAST AT THIS TIME.

2) USDA WILL INTRODUCE MAJOR CHANGES IN THE USDA FEES IMPOSED EFFECTIVE 10/1/16. THE UP FRONT USDA FEE WILL DROP FROM 2.750% TO 1.00% OF THE  BASE LOAN AMOUNT AND THE MONTHLY FEE WILL BE REDUCED FROM .50% TO .35% OF THE LOAN AMOUNT. THIS IS HUGE, ALLOWING MUCH MORE FAVORABLE FEES FOR BORROWERS AND THUS MUCH LESS COSTS FOR A MORTGAGE LOAN. THIS WILL ENCOURAGE MORE PURCHASES AND MORE BANG FOR THE BUCK, AND SHOULD STIMULATE THE MARKET EVEN MORE.

FOR YOUR MORTGAGE NEEDS CONTACT US AT DIVERSIFIED MORTGAGE BROKERS, COVERING THE STATE OFF VIRGINIA WITH PRIDE FOR 27 YEARS, TEL: 434-237-3143, EMAIL: DBI4009@AOL.COM   WEB: WWW.DIVERSIFIEDMORTBROKERS.COM                                      

Diversified Mortgage Brokers

100 Copley Place, Suite D, Lynchburg, Virginia 24502
Toll Free: 800-388-3561 | Phone: 434-237-3143 | Fax: 434-239-4852
Email: dbi4009@aol.com | NMLS ID# 188675 (www.nmlsconsumeraccess.com)
http://www.diversifiedmortbrokers.com/

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