Fannie will lower its credit score requirements, reduce the amount of income verification needed, and waive the need for appraisals. These changes apply to loans which the company owns or guarantees.
“To allow more borrowers to take advantage of today’s historically low interest rates and help the lending community break the logjam in mortgage refinancing, the company is extending its refinance offerings,” a Fannie Mae spokesperson said in an e-mailed statement. The program “will streamline” refinancing “for potentially millions of current mortgage holders,” he said.
Fannie Mae to Loosen Rules for Home-Loan Refinancing (Update2) [Bloomberg]