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As credit reports get further scrutiny from Fannie Mae, consumer credit counseling may help maintain scores
By Edith Barlow on Jul 18th, 2010
Having a solid financial history has become more important when it comes to getting home loans, especially after the recent economic problems experienced by the country.
Furthermore, the Washington Post reported that government-owned company Fannie Mae has encouraged lenders to give a buyer's credit report a second look before closing on a mortgage. The purpose, according to the report, was to see whether a consumer has taken on any additional debt, such as another loan.
"Such new debt could undermine the ability to repay the mortgage," the Post said.
However, the report said lenders are feeling a bit negative about the requirement from Fannie Mae and say that even short-term loans could be enough to keep a person from qualifying for a loan. In response, Fannie Mae said it will review the policy and make additional recommendations by the end of the month.
Even if the new guidance relaxes the rules a bit, keeping a credit report in good order is still a positive course of action for consumers. Staying on top of bills is one way to do so, and a consumer credit counseling service can help by developing a budget plan.
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