Heads-up! Buyer credit changes could sabotage your closing.

Financing Alert: Fannie Mae Loan Quality Initiative

June 1, 2010 marked the beginning of Fannie Mae's "Loan Quality Initiative." If you're not familiar with the initiative, now would be a good time to become familiar with it. Why? Well, one of the provisions in the initiative is "credit re-verification" on the day of funding. If your borrower's credit changes more than 2%, it's back to underwriting for approval! You need to know how to help buyers protect their financing by making smart moves between first and second verification. There are several other important considerations to the initiative as well.

The following articles will help you wrap your head around Fannie Mae's LQI:

Fannie Mae's loan quality initiative: another potential snag with financing
http://bit.ly/cX5Y6P
(BostonGlobe.com)

Borrowers: Beware the Second Credit Report
http://bit.ly/c9hCI6
(SmartMoney.com)

Fannie Mae "Loan Quality Initiative" begins June 1, 2010. How will this affect home buyers?
http://bit.ly/9cevT7
(Amy Jones, RE/MAX Excalibur, Arizona)

For the fine print, don't miss Fannie Mae's page dedicated to the initiative:
https://www.efanniemae.com/sf/lqi/index.jsp