This summer, the Federal National Mortgage Association is updating its automated underwriting system with more relaxed requirements for ratios, credit and adjustable rates.
Desktop Underwriter Version 10.1 will be implemented by Fannie Mae during the weekend of July 29, the secondary mortgage lender revealed in a notice Tuesday.
With the changes, the maximum debt-to-income ratio can go as high as 50 percent. DTI ratios between 45 percent and 50 percent will no longer need compensating factors.
Source: Mortgage Daily