Fannie Mae, public/private purchaser of many residential mortgages announced today that they have revised their guidelines. This means that all conforming loans, the loans that have the lowest interest rates and the best terms, will now have to conform to a new set of standards. The revised guidelines will negatively affect borrowers with low credit scores and borrowers who have had past credit issues. While they did not directly mention a fee increase for the loans they purchase, it is widely expected that they will follow Freddie Mac and add fees for riskier loans.
Individuals with a bad credit rating and money problems regularly need a fast loan. However, they face restrictions when borrowing money from high street banks because of the risk of loan default. Whilst a homeowner can get a bad credit loan because of the provision of collateral, it can take many weeks to complete. Most fast loan requirements also tend to be for smaller sums so secured loans aren’t suitable.
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