Fannie Mae is increasing the maximum debt-to-income ratio it will allow on purchased loans to 50% from 45% on single-family loans when it rolls out its latest version of Desktop Underwriter on July 29.
From automated applications that borrowers can complete on their own, to data-mapping that speeds up the underwriting process, here's a look at strategies that can help lenders close loans faster.
Tech-savvy mortgage broker Sindeo is back in business, following an acquisition by Renren, a Chinese social media company and an investor in U.S.-based fintech firms including Social Finance and LendingHome.
Fannie Mae and Freddie Mac's efforts to provide representation and warranty relief to lenders that perform automated data validations before loans close will improve mortgage credit risk assessment and lower costs for lenders and borrowers.
The shuttering of tech-savvy mortgage broker Sindeo reflects the challenges of operating during a period of weak volume in a difficult originations channel, not its embrace of digital mortgages.
Affordable housing shortages and declining loan volumes are making it difficult for banks to originate enough mortgages to meet their Community Reinvestment Act obligations, which could make filling shortfalls with loans from nonbanks more expensive.
