This is very important news today and is going to change the interest rates available to our clients in the Conforming loan amount range. Starting December 5th Fannie Mae has implemented what they are calling Risk Based Pricing.
In a nutshell what this means is that borrowers with scores lower than 680 are possibly going to have to pay higher interest rates for conforming Fannie Mae loans (see exact LTV and credit score add-ons below.) This is not that big of a deal for our market because most of our borrowers have credit scores higher than 680, but it is something to be aware of.
Shane Cook Senior Mortgage Specialist First Horizon Home Loans (Office) 800-256-7887 (Cell) 252-207-2665 (Fax) 866-669-5871
