In Bulletin 2017-23, Freddie Mac announced changes to student loans repayment requirements. In their bulletin, they indicated that they believe that the updated requirements for qualifying borrowers with student loan debt support access to credit and provide sellers with a responsible, simplified approach that addresses student loan repayment plans and student loan forgiveness programs offered today.
Read MoreBoth Fannie Mae and Freddie Mac have updated their policy regarding contingent liabilities or debt paid by others. Previously, both Fannie Mae and Freddie Mac required that in order to exclude a borrower’s debt that is being paid by another party, the other party that was paying the debt had to also be responsible for the liability. However, that is no longer the case for non-mortgage debt for Fannie Mae and for both mortgage and non-mortgage debt for Freddie Mac.
Read MoreThis past August, Freddie Mac released Bulletin 2017-12, in which they announced several changes, both enhancements and restrictions, in regards to rental income. These changes are effective with all settlement dates on and after February 9, 2018, however they will allow implementation of the changes in their entirety immediately. PRMG will be requiring that all loans funded on or after Tuesday, December 26, 2017 follow the new requirements.
Read MoreOn the weekend of July 29, 2017, Fannie Mae implemented Desktop Underwriter (DU) Version 10.1, which included several enhancements to their existing offering. Since the updates only apply when using DU 10.1, if the loan was run previously though DU, the loan will need to be rerun with a new DU case number. It is important to note that DU will continue to run the loan using the existing version (in this case DU 10.0) unless you go in and trigger it to run the new version.
Read MoreAccording to Forbes.com, there is 1.3 trillion dollars of student loan debt in the United States. Student loan debt is the second highest consumer debt category (mortgage debt is the first) and is higher than both credit cards and auto loans. The Forbes article indicates that the average student in the class of 2016 has $37,172 in student loan debt.
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