Updated about 10 years ago on . Most recent reply
News: Are Lenders Removing Overlays?
"For the first time in seven quarters, we see a pronounced increase in the share of lenders, particularly medium- and larger-sized lenders, reporting on net an easing of credit standards in both the GSE eligible and non-GSE eligible loan categories,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
"This is a significant result in light of public discourse on credit availability and standards."
.... lenders are becoming more comfortable with the GSEs’ updated guidelines intended to provide them greater certainty regarding representations and warranties. Lenders also might be more accustomed to the regulatory and compliance environment....
....Finally, lenders may be removing credit overlays,...Overall, we expect that lenders’ tendency toward easing credit standards, together with relatively low mortgage rates and a strengthening labor market, will continue to support the housing market expansion."