New credit score regulations

Anyone know which investors/servicers are participating in the under 600 credit score no financials needed?

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Permalink Reply by Keri Sweetland on October 9, 2012 at 5:13am

Actually, this is a short sale program not a new financing program.  It allows sellers with a credit score of less than 600 to short sale their home with minimum financial documents.  I just want to find out WHO is doing it, if it's a specific servicer or investor.

 

Permalink Reply by Keri Sweetland on October 9, 2012 at 5:30am

Statistically probably not very, but realistically if the lenders are qualifying the sellers properly in terms of credit, income and healthy DTI ratios, it may not be bad if the cash in hand is the only thing holding them back. NACA (www.naca.com) has been doing no money down/no closing cost loans with BOA and CITI for years and years now and their default rate is very low, BUT the buyer pays in to the NACA fund and there is a tremendous amount of counseling and red tape to get these loans.

Permalink Reply by Jeff Payne on October 9, 2012 at 5:13am

Keri, do you mean a short sale program that requires little or no docs depending on credit score?   I know that many of the BIG Lenders are talking about it but not sure of implementation

Permalink Reply by Keri Sweetland on October 9, 2012 at 5:15am

Yes, I just got two lenders that started doing it on two of my short sales, I've inquired via the processors & negotiators with those particular files but the bank staff is still catching up to speed.  They see it as a tag in their system but they can't give me a WHY.  I'm going to start tracking them with the investors that I track and let you know if I see a trend, but I was hoping someone would have more intel than me on it.

 

Permalink Reply by Kevin - Greenville, SC on October 9, 2012 at 9:20am

New Fannie and Freddie guidelines that are effective after 11-1-12 require only limited financials if the score is 620 or below.  It remains to be seen what the Servicer's are going to do with this.

Permalink Reply by Keri Sweetland on October 9, 2012 at 9:24am

Thanks Kevin, I know I could rely on you!  But Fannie & Freddie are pulling out of HAFA Dec. 31st, 2012 still right?

Permalink Reply by Kevin - Greenville, SC on October 9, 2012 at 9:51am

Yes, but the new Standard/HAFA II program is better in my opinion which goes into effect on 11-1-12.

Permalink Reply by Keri Sweetland on October 11, 2012 at 2:41am

Kevin I know you have links to the info. on this....can you share?  I've googled etc. but all I'm coming up with is articles about it not from the source. 

Permalink Reply by Elizabeth Ross James on October 10, 2012 at 3:56am

Hello, Bank of America just came out with a streamline short sale that does not require any financials. In most situations, this is only offered by portfolio investors (bank owned loans). Also, most co-op short sales do not require financials, but again those are bank owned loans too. Just my two cents.

Thanks,

Elizabeth 

Permalink Reply by Keri Sweetland on October 11, 2012 at 2:40am

@ Elizabeth-Yeah, I've heard about this but haven't seen it yet.  Coop is going pretty well though, wish they were all coop!!! :)

Permalink Reply by Kevin - Greenville, SC on October 11, 2012 at 4:17am
Permalink Reply by Kevin - Greenville, SC on October 11, 2012 at 4:18am

Bank of America will do Cooperative on FNMA Loans too.

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