On June 1, government-sponsored Fannie Mae started requiring lenders to recheck a

borrower’s finances shortly before closing the loan, the New York
Times reported. If a broker or lender finds significant changes, the
loan could be delayed or denied. The new policy reflects the
organization’s focus on “sustainability,” Janis Smith, a spokesperson
for Fannie Mae, told the Times. Industry executives say the change in policy

should not have a drastic effect on borrowing, unless the borrower is
prone to running up huge credit card bills. [NYT]

[more]

On June 1, government-sponsored Fannie Mae started requiring lenders to recheck a

borrower’s finances shortly before closing the loan, the New York
Times reported. If a broker or lender finds significant changes, the
loan could be delayed or denied. The new policy reflects the
organization’s focus on “sustainability,” Janis Smith, a spokesperson
for Fannie Mae, told the Times. Industry executives say the change in policy

should not have a drastic effect on borrowing, unless the borrower is
prone to running up huge credit card bills. [NYT]

[more]

If you’re thinking about applying for a home mortgage later this spring, here’s some important news: Beginning June 1, your lender is likely to order a second full credit screening immediately before closing.

The last-minute credit report will be designed to find out whether you’ve obtained — or even shopped for — new debt between the date of your loan application and the closing. If you’ve made applications for credit of any type — for furnishings and appliances for the new house, a car, landscaping, home equity line, new credit card, you name it — the closing could be put on hold pending additional research by the lender.

If you’ve actually taken out new loans that are sizable enough to affect the debt-to-income ratio calculations used in your original mortgage approval, the whole deal could fall through. The added debt load could render you ineligible for the mortgage because you suddenly appear unable to handle the payments without a strain on your household budget. [more]