Stupid is as stupid does. I think we'd be much better off with Forrest Gump in Congress. Their decisions via Fannie Mae & Freddie Mac have led to new & stupid lending criteria. Want a home? Abstain from sex until after you get a loan! And then if you do get blessed with a pregnancy, maybe the lender will go after you for falsifying your loan application!!!

Need a Mortgage? Don’t Get Pregnant!

Published: Tuesday, 20 Jul 2010 | 11:14 AM E

Expectant parents shopping for a home are not the only ones concerned about the date of the baby’s arrival.

Mortgage lenders are taking a harder look at prospective borrowers whose income has temporarily fallen while they are on leave, including new parents at home taking care of a baby. Even if a parent plans on returning to work within weeks, some lenders are balking at approving the loans. 

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The lenders’ new attitude can be traced, in part, to new loan quality-control measures that went into effect earlier this year. Fannie Mae and Freddie Mac, the two quasi-governmental mortgage giants that buy the bulk of conventional loans from lenders, have not changed their rules for qualifying for a mortgage. But the system of checks and balances has been tightened, making lenders increasingly skittish. 

Fannie, for instance, now requires lenders to recheck a borrower’s financial situation right before the loan closes. That includes calling an employer to verify employment. Before, lenders required only a statement in writing. Fannie’s new rules went into effect on June 1. Freddie’s similar rule took effect in January.

For the entire article go to: Need a Mortgage? Don’t Get Pregnant!