Bank of America has expanded its residential underwriting guidelines for mortgage applicants that run their own businesses, which could loosen up credit to an underserved segment of the industry. Previously, the nation's second largest originator allowed the use of "business funds" to be considered by sole proprietors when applying for a mortgage. A spokesman for the lender said it has expanded those guidelines to include an applicant's partnerships and corporations. The change is for both retail and broker-sourced loans, the spokesman told National Mortgage News. With the crash in the alt-A and stated-income markets, self employed consumers and small business owners have found it tougher to get loans.
Processing Content
