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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] This is exactly what's going on... Posted by CC in OC on October 21, 2008 at 9:02 PM In Reply to: I'm the one who wrote CC posted by BIG on October 21, 2008 at 5:53 PM BIG wrote: From what I have learned although this is not a freddie/fannie rule some lenders are adding additional guidelines to safeguard themselves. BIG is experiencing an incident of "risk overlay." Here's another discussion board post where the broker is asking, "Where are the lenders with no seasoning?" http://forum.brokeroutpost.com/loans/forum/2/18754.htm Here's another explanation [excerpt]. http://findarticles.com/p/articles/mi_qa5344/is_200609/ai_n21398536/pg_2 Mortgage lenders say they will continue doing what they've been doing. Liberty Bank sells all its 30-year fixed rate loans to Fannie Mae and Freddie Mac. "There's no real risk as long as we're in compliance with their guidelines," Steele said. Lower-grade loans that don't meet Fannies or Freddie's requirements are sold, servicing released, he said. Liberty keeps its adjustable rate mortgages in its portfolio, but overlays certain criteria atop the automated underwriting systems of Fannie Mae and Freddie Mac to keep the loans within its risk profile. For example, while the Fannie and Freddie automated underwriting system would allow a debt-to-incomc ratio of 100 percent, Liberty permits only 50 percent. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : BIG wrote: From what I have learned although this is not a freddie/fannie rule some lenders are adding additional guidelines to safeguard themselves. : BIG is experiencing an incident of "risk overlay." Here's another discussion board post where the broker is asking, "Where are the lenders with no seasoning?" : http://forum.brokeroutpost.com/loans/forum/2/18754.htm : Here's another explanation [excerpt]. : http://findarticles.com/p/articles/mi_qa5344/is_200609/ai_n21398536/pg_2 : Mortgage lenders say they will continue doing what they've been doing. Liberty Bank sells all its 30-year fixed rate loans to Fannie Mae and Freddie Mac. "There's no real risk as long as we're in compliance with their guidelines," Steele said. Lower-grade loans that don't meet Fannies or Freddie's requirements are sold, servicing released, he said. Liberty keeps its adjustable rate mortgages in its portfolio, but overlays certain criteria atop the automated underwriting systems of Fannie Mae and Freddie Mac to keep the loans within its risk profile. For example, while the Fannie and Freddie automated underwriting system would allow a debt-to-incomc ratio of 100 percent, Liberty permits only 50 percent. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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