NEWS

Thu, Jul 22

Extra credit checks required by Fannie make some lenders anxious

People who applied for a mortgage as of June 1 might see their finances -- specifically their debt -- under renewed scrutiny days before they are scheduled to complete a home purchase.

Fannie Mae, the giant government-run mortgage finance company, rolled out a new policy this summer that encourages lenders to retrieve a borrower's "refreshed" credit report just before a loan closes.

The goal is to check whether the borrower has taken on additional debt or opened new lines of credit since applying -- such as a second mortgage or an auto loan. Such new debt could undermine the ability to repay the mortgage. Read more.

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