Over the past several weeks lenders have responded to the COVID-19 pandemic by tightening mortgage eligibility standards. Since mid-March, numerous lenders have stiffened the credit requirements such as increasing the minimum FICO credit score, increasing the debt-to-income ratio, and lowering the allowed percentage for loan-to-value. Lock-day restrictions have also been imposed for 45 days or greater.
Lenders have also suspended various types of products such as Cash-Outs, HELOCs, Non-Conforming Jumbo Loans and Non-Conventional Portfolios, among other specialty programs.
Many lenders have sent Mortech documentation stating they have put into place these restrictions and suspensions as a temporary status. However, some have not stated if these changes are temporary or permanent. After having had numerous requests for these restrictions to be placed into Marksman over the past several weeks, we are now seeing trickles of lender requests loosening up eligibility, allowing Cash-Outs and easing up on credit criteria. We will continue to monitor lender websites for guidelines and bulletin updates and make every effort to have the most recent documents for lenders uploaded to Marksman.
As for the agencies FNMA, FHLMC and HUD, they have not restricted any of the eligibility specifications mentioned above in their guidelines, however they have made some policy changes attributed to the COVID-19 crisis.
Updates and information regarding forbearance workout options can be found in the below links:
Appraisal and inspection information can be found in the following links:
Read more about originations and other servicing material at the below links: