As reported in the Baltimore Business Journal today, Fannie Mae – the Washington, D.C.-based mortgage giant – is setting new rules about what mortgages it will buy.

These new underwriting guidelines will have a huge impact on the number of people who will get loans and the amount of business that flows through the real estate, banking, legal and title industries:

• Fannie Mae told lenders it will no longer buy most loans made to borrowers with credit scores below 580,
• Nor will Fannie Mae buy loans that have been more than 60 days past due within the last year.
•  Fannie Mae, without evidence that extenuating circumstances have led to a foreclosure, it will also no longer buy mortgages made to borrowers who have lost a home to foreclosure within the last five (5) years. Fannie Mae currently considers mortgages after four years have passed.
• The new rules go into effect June 1.

Tags: Fannie Mae

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