Fact Sheet | September 2014
Prior Derogatory Credit Event – Borrower Eligibility
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To be eligible for a mortgage loan, Fannie Mae requires borrowers to demonstrate that they have re-established credit following a significant derogatory credit event, such as a foreclosure, bankruptcy, preforeclosure sale (commonly known as a short sale), or deed-in-lieu (DIL) of foreclosure. Fannie Mae has minimum waiting periods that must be met before the borrower is eligible for a new loan following such an action. Fannie Mae is focused on helping lenders to provide access to mortgages for creditworthy borrowers while supporting sustainable homeownership.
This must happen when you allowed most of the foreclosed household get unfairly screwed and you got no other buyer to enter the housing market. It called no move up purchasers to buy existing home, and stop this BS renting is good for people!
I had a long conversation with Asst Sec of HUD, David Stevens, before he left to go thru revolving door to CEO of Mortgage Bankers. I told him that there were MANY former homeowners who will never ever buy another house. I also told him that there are many young people watching their parents get screwed by the Mortgage Bankers who will never ever buy a house. I warned him that his entire organization screwed themselves to conduct this massive crime spree.
It’s hilarious that it’s coming home to roost.