Friday, December 10, 2010

Forclosure seasoning changes for Conventional Loans

Conventional loans just changed their foreclosure guidelines from 5 years to 7 years.  (FHA is still 3 years)  See below:

DU Version 8.2 Implementation

In response to Fannie Mae Announcements and Freddie Mac Bulletins with subsequent updates to DU and LP, please see the following guideline changes:

·          The waiting period that must elapse after a borrower experiences a foreclosure will increase to seven years. If the foreclosure is reported within seven years of the credit report date, the loan case file will receive a Refer, and is ineligible for purchase.

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