Fannie Mae to tighten lending standards
WASHINGTON (Reuters) - Fannie Mae plans to raise minimum credit score requirements next month and limit the amount of overall debt that borrowers can carry relative to their incomes, The Washington Post reported on Thursday. Starting December 12, the automated system that the government-controlled mortgage finance company uses to approve loans will reject borrowers who have at least a 20 percent down payment but whose credit scores fall below 620 out of 850, the newspaper reported. Previously, the cut-off was 580. Also, for borrowers with a 20 percent down payment, no more than 45 percent of their gross monthly income...
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Tags: Automated System, Borrowers, Credit Score, Credit Scores, Fannie Mae, Finance Company, Incomes, Loans, Mortgage Finance, Reuters, Score Requirements, Washington Post