Fannie Mae Loan - Purchases after Pre-Approval
I just received this email from one of the loan officers that I work with and thought that it was worth sharing with everyone. I am usually pretty good about warning everyone about making purchases after they are pre-approved but I feel like I can't say this too many times.
I have an update this week that could help your buyers alleviate a potential big issue in the loan origination process.
Beginning June 1, lenders originating mortgages being sold to Fannie Mae will have to pull a second credit report just before the loan closes. The new quality control requirement is designed to prevent a type of mortgage fraud called shotgunning. By pulling a second credit report, lenders can find out whether other creditors have recently requested information about the mortgage applicant. This is a red flag indicating someone might be trying to obtain several loans on the same property.
By also implementing this new rule, Fannie Mae wants to make sure that lenders have counted all liabilties up to the day of closing. Lenders will be comparing the original credit report to the new credit report to ensure that no new debt was established. At this time, it is unknown whether the new credit report will supercede the buyer's previous credit scores but I will be sure to let you know when I have that information.
So, it becomes extremely important to advise all conventional buyers NOT to take on any new debt throughout the PREAPPROVAL and mortgage process. Since credit reports are good for 90 days, it is quite possible that a buyer might take on new debt as they search for a new home. I will be alerting all conventional buyers not to take on any new debt but two voices are always better than one!
As always, please call me with any questions and of course, I would love to help your buyers.
Tammi Lewis
Senior Loan Consultant
1st Mariner Mortgage
Cell#: (410)725-9451
Fax #: (443)296-9132