Yellow Pages |   News Updates |   Local Jobs |   Events Calendar |   Movie Times | Recycling
Rocklin & Roseville Today Local Events
contact add event advertise 

Different Standards From Mortgage Lenders

As the housing market continues to recover, demand for mortgages increased during the second quarter of the year but the difference in credit standards between larger and smaller lenders appears to be growing.  This is according to Fannie Mae, which tracks current lending activities.

There is industry agreement; it is not easy for consumers to get a mortgage today as some lenders are tightening their credit standards more than others.  In Fannie Mae's "Lender Sentiment Survey," they found smaller and mid-size lenders are more likely than larger lenders to report their credit standards tightened over the past quarter.  These same lenders also said they are more likely to tighten them even more in the next three months.

The larger lenders, on the other hand, were more likely to say they have eased credit standards and they expect to continue to ease requirements over the next few months.

The most common reason for increasing credit standards as reported by small to mid-size lenders in the survey was regulatory requirements.  For example, in January, the qualified mortgage rule took effect, which aims to protect consumers by strengthening underwriting standards.  This rule requires, among other requirements, all mortgage applicants to do full documentation of income, assets, and employment; have a maximum of 3 percent for points and fees; and has a cap of 43 percent on the back-end debt-to-income ratio. 

As costs rise many smaller lenders may be applying more conservative standards to slow down this portion of their business while they find ways to manage increased costs.  It would appear the large lenders are better equipped to manage the increased regulatory costs.

The Fannie Mae survey did report, overall, that lenders reported positive expectations for mortgage demand throughout the remainder of the year but with only modest growth.
For consumers who are considering buying  a home the message is clear, talk to more than one lender and although I have not been a fan of the larger lenders, now may be a good time to add one to your mix of conversations.

If you have any questions or would like more information about the Fannie Mae survey, please let me know.  I can be reached at the MagnumOne Realty office in Roseville (916-899-6571) or by email to  I would love to hear from you.

Julie Jalone, wife and mother living in Rocklin, is an experienced professional Realtor ® serving
the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties.

Julie may be reached online at or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento

Placer County News Headlines

Roseville Flash Crime Report (11.25.15)Roseville, CA- Crime flash report for Roseville, November 25, 2015.

Water Savings Fall Short AgainRoseville, CA. - Customers in San Juan Water District's retail service area reduced their October water use by 26 percent, which is 10 percent less

Chapa-De Indian Health Website for PatientsAUBURN, CA - Chapa-De Indian Health is proud to announce the launch of its newly updated website will also allow patients to learn about the comprehensive healthcare services

Blindness EtiquetteRoseville, CA - If you are meeting a person who is blind or visually impaired for the first time, do you offer your hand for him to shake?

Toyota RAV4 remains reliable compact SUVRoseville, CA- There is obviously a lot to like regarding the RAV4, starting with a sticker price that ranges from $23,680 to $29,850.

Roseville, Rocklin May Get Jobs Boost from Sunset Area PlanRoseville, CA - Currently known as the Sunset Industrial area west of Highway 65 and surrounded by the cities of Roseville, Rocklin and Lincoln.

Loretta Claiborne: RevisitedRoseville, CA - Last week, I began telling you about Loretta Claiborne, an African American who was born poor, partially blind, and with an intellectual disability.

Placer County Water Agency Adopts 2016 BudgetAUBURN, Calif. - At its November 19 meeting, the Placer County Water Agency (PCWA) Board of Directors adopted the Agency's 2016 budget

Rocklin Crime Report Update: DUI Arrests JumpRocklin, CA - Rocklin police weekly crime report digest update summary for the period of November 9- 15, 2015.

Roseville and Rocklin Among Beneficiaries of Clean Energy ProjectsRoseville, CA - The Placer County Board of Supervisors received a program update on mPOWER which has funded more than $35 million in clean energy projects

Cali Bowl in Roseville November 27-29Roseville, CA- The 8th Annual California Bowl comes to Roseville on Nov. 27-29 at the Woodcreek High School football stadium

Roseville to Hold Green Gardening at Home SeriesRoseville, CA - Starting this January, the Roseville Utility Exploration Center, 1501 Pleasant Grove Blvd. at Mahany Park

NEWS: In Case You Missed It