HELP ON THE WAY FROM FANNIE MAE

That has a nice rhyme to it; hope its true!

I understand that Fannie Mae, The Federal Home Loan Mortgage Association, will soon loosen the rules for homeowners in their quest to refinance their existing mortgage to a new one for the express purpose to lower the monthly payment. Of course this change will only pertain to the company's own loans or loans they guarantee. That being said, not to worry since Fannie owns in excess of 40% of the estimated $12 trillion in U.S. residential mortgage debt. Likely this could affect you and I and a homeowner near you.

The deal is: more flexibility by dropping some credit-score requirements ( well hello. FICO changed the scoring criteria so they have to), reduce the income documentation standards (shades of those old time "stated income" loans but not likely) , and in some cases actually waive the need for an appraisal ( and in these times of Appraisal Review and second Appraisals, how about that), all in attempt to get the housing market engine started again. Could this possibly be some of the first stimulus package monies really being spent where it needs to be spent?

The program's name is DU Refi Plus, and starts April 4 which is significant in of itself. If the proposed start date had been April 1 then we would know it was too good to be true.

Ron Whitworth,

"Back on the Loan Trail again"