A borrower who goes through a foreclosure must wait at least seven years before getting a new Fannie Mae loan, according to new underwriting guidelines that are being distributed along with an updated version of the GSE's Desktop Underwriter program.
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According to a bulletin released to Fannie seller/servicers, the stipulation reads: "The minimum seasoning period after a foreclosure is seven (7) years."
The current minimum is in the range of four years, depending on conditions, said one lender who does Fannie loans. (This figure could not be confirmed. At press time the GSE could not be reached for comment.)
Fannie will release its 8.2 version of DU over the coming weekend. Among the underwriting changes is a requirement for "gift" letters.
