Realty Check’s Diana Olick is reporting that two major changes in the mortgage market go into effect this month that, while helping more borrowers qualify for home loans, will also add more risk to the mortgage market. According to the report, three major credit rating agencies (Equifax, TransUnion and Experian) will drop tax liens and civil judgments from some consumers’ profiles if the information isn’t complete and Fannie Mae & Freddie Mac will allow borrowers to have higher levels of debt and still qualify for a mortgage. She says these two major lending changes mean it’s “suddenly easier to get a mortgage.”
“During the last housing boom, anyone with a pulse could get a mortgage, but after the financial crisis, underwriting rules tightened significantly. As a result, current default rates on loans made in the last eight years are lower than historical norms.”
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