Even harder to get a mortgage in MD?
By: Myles, June 10th, 2008
Effective June 1, 2008 Maryland Senate Bill 363 went into effect, basically eliminating all lenders from closing any Alt Doc loans (NINA, NO RATIO, STATED Loans) where income has not been documented to show the borrowers can afford the monthly payments.
Maryland is the fourth State (West Virginia, Minnesota, and Ohio) to pass this type of law. Other States currently have the same bills out for legislative review and vote.
What this means is that any loan closing in Maryland must have income documentation in the loan file - pay stubs, W-2s, 1099s, and/or income tax returns, even in cases where the loan program does not require these documents (as many Fannie Mae and Freddie Mac programs with excellent credit do not).
Along with rising mortage rates, this law — although logical and perhaps even necessary — is anything but a stimulus initiative. So be prepared.
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