Mr. Gregory Samp

GLG News by Mr. Gregory Samp, Principal

Analyses are solely the work of the authors and have not been edited or endorsed by GLG.

GLG News is now G+ Insights

G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.

Mortgage loan restrictions by zip code or county: Prudent reaction to the declining housing market or redlining?

February 5, 2008

Analysis of:Zip Code 'Redlining': A Sweeping View of Risk | www.washingtonpost.com

Fannie Mae announced on December 5, 2007 that down payment requirements will be increased by 5 percentage points over the previously allowed minimum down payment in areas identified as declining. While Fannie’s Desktop Underwriter (DU) will generate a message on loan casefiles when it appears that the property is in an area of declining home prices, Fannie also “strongly encourages” lenders to use other tools to independently assess current housing trends. Kenneth Harney’s article notes that Countrywide has provided mortgage brokers with county wide ratings while GMAC-ResCap has provided brokers with zip code based ratings. The higher level approach to declining markets resulting in an additional 5% investment by the homebuyer could lock some buyers out of the market and also will likely result in lenders having to defend themselves against new claims of redlining.

Page : 11 to 1 of 1

Subscribe to Updates

By RSS