Fannie Mae, which controls nearly half of the mortgages in the country, will launch a new program in April to help those who are self-employed or have bad credit take advantage of the refinance craze.
The "Refi Plus Program" will waive the normal credit score requirement for a refinance; it will have reduced documentation standards for proof of income; and it will allow for computer-based appraisals, which tend to inflate the value of a home and make it easier to qualify for a refinance.
More people stand to be affected by these upcoming changes than the entire number of people who have already gotten their refis!
However, Refi Plus will ultimately lead to higher defaults and more foreclosures; it is, after all, a lessening of standards. But apparently the "experts" aren't overly concerned. They're holding out for the hope that the program will actually allow people who couldn't make their mortgage every month to do so.
Labels: fannie mae, mortgage, program, refi plus, refinance