It was just recently announced that Fannie and Freddie were increasing the rate adjustments for borrowers with fico scores under 720 as well as all cash out refinance transactions, especially those that exceed 60% loan to value. Lenders were very quick to come out with the new hits included in their daily rate sheets, so don't be surprised to see the higher rates reflected if you have a score under 720 or are cashing out on a refinance.
In other fico score related news I have had almost all of my FHA lenders send word that they are no longer underwriting files with a fico score under 620 even if I receive an approve eligible finding from Fannie or Accept from Freddie.
It is sad that the pool of borrowers that we can lend to is continuing to shrink, but that being said it is a necessary correction in order to further protect the integrity or whats left of it of our US housing market.
Hey I have an Idea that may help as well. How about going after some of these builders that were doing the investment schemes and selling homes to straw buyers. Lets make sure they never ever build another home in Utah. Without this glut of inventory that was built under false pretenses an sold to investors (suspecting or unsuspecting) we would have a lot less homes to compete with on the market. Right now there is literally nothing selling that is not bank owned or in short sell. Ok there are some homes selling but the majority of the appraisal comps I am seeing on my appraisals that come back are listed as short sales or bank owned. That is the market right now.
I can't wait until it all sells off at what ever ridiculous prices they want to sell it for so we can get back to selling home at Market value.
Stetson Lowe - The Mortgage Insider - www.utahloantips.com
