Fannie Mae tightens mortgage rules
Published April 2nd, 2008
Fannie Mae , the largest U.S. home funding company, told lenders on Monday that it will require a minimum credit score for loans it buys on an individual basis, the Wall Street Journal reported Wednesday in its online edition.
In the past, Fannie Mae had no minimum score, the Journal said. A credit score is a predictor of how likely a customer is to pay on time, and the Journal said the company will require a minimum score of 580 for most loans, adding it will still acquire loans with lower credit scores in certain circumstances.
According to the Journal, Fannie said it will increase the period needed for borrowers to re-establish their credit history after a foreclosure to five years from four years.
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