Mortgage Firms Easing Standards
Seeking to counter a sharp contraction in origination volume, some mortgage lenders are easing underwriting guidelines slightly.
The changes include scaling back credit score thresholds for FHA-backed loans as well as accepting higher loan-to-value and debt-to-income ratios on loans that are going to be securitized. The trend has not necessarily made it easier to obtain financing, observers say.
Source: “Mortgage Firms Easing Standards,” American Banker, Kate Berry (June 28, 2011)