Mortgage Lenders Set to Relax Standards on December 1 — Wall Street Journal
Some of the largest U.S. mortgage lenders are preparing to further ease standards for borrowers after the release of new guidelines this month from mortgage giants Fannie Mae and Freddie Mac .The new guidelines, to take full effect Dec. 1, resulted from an agreement in October meant to clarify when lenders would be penalized for making mistakes on mortgages they sell to Fannie and Freddie. Lenders have blamed the lack of clarity for tight credit conditions that have made it difficult for many consumers to qualify for a mortgage.Relaxing the lending standards potentially could make it possible for hundreds of thousands of additional consumers to get mortgages.
Among the rules relaxed are credit score requirements and paperwork reduction.
