Freddie Mac, Fannie Mae: Follow New Guidelines on Bad Credit Home Loans
Federal regulators who oversee the financial health of government-sponsored mortgage repurchasers Fannie Mae and Freddie Mac say they must follow new guidelines for nontraditional, bad credit home loans.
The guidelines, published in September, direct federally chartered banks to use stricter underwriting standards and fully disclose to borrowers the risks such bad credit mortgages carry.
James Lockhart, director of the Office of Federal Housing Enterprise Oversight, said Fannie Mae and Freddie Mac have until Feb. 28 to report back to OFHEO on their progress in developing policies, consumer credit quality standards and capital provisions in line with the guidelines.
“OFHEO supports what the banking regulators have issued, and we have taken steps to ensure that Fannie Mae and Freddie Mac incorporate the principles of that guidance into their risk management and business practices,” Lockhart said. “This will enhance the overall level of underwriting standards, risk management practices and consumer protection in the mortgage market.”
We concur. While bad credit home loans are important products for those hoping to own property, it’s vital that all borrowers are fully aware of what’s at stake. The typically higher mortgage interest rates on these resources, for example, must be disclosed fully from the outset.
April 18th, 2007 at 1:11 am
I took a second mortgage last year when I lost my job, I was making less money and my wife couldn’t work because we had three babies. I was paying all my bills late and my credit got really bad.
Right now I just started to make the same money I was making before, my wife is now working but we are really behind with our mortgage payments, I can’t get a loan because of my bad credit and I’m not sure what to do. Our home it’s worth 275,000 we own 197,000 in our first mortgage and 37,000 in our second we raelly think we can save our home if we had the chance to caugh up with our payments but without a loan it will be really hard. Any suggestions?
We are about 4 or 5 payments behind last month we sent Popular Mortgage (our mort. Company) 5,000 and they gave us a payment plan that it’s way too high for us to be able to pay and we couldn’t send the payment this month. We aread put a lot of money into our home, our little kids love it and we really don’t want to loose it.
I’ll really appreciate it if you could give me any suggestions on what to do if there is anything I can do at this point.
GOVERNMENT GRANTS?, 40 OR 50 YEAR REFINANCING? I’m 38 years old and I make 49,000 a year plus bonus I just don’t want to make any more mistakes and with my bad credit I’m not sure what will it be the best solution.
Thanks,
Antonio Alfieri
June 21st, 2007 at 1:27 am
we are a family of five i stay home with the kids and husband is working a hour away and trying to make ends meet we are needing help getting a first time home buyers loan we have no assets and we are trying to get his student loan back under control or pay it off even and i dont know where to go and what to do the kids are under 10 and our credit is very poor and i want to resolve that if we can
is there any solutions that you may be able to help with
sincerely
Mrs. Thacker