Yellow Pages |   News Updates |   Local Jobs |   Events Calendar |   Movie Times | Recycling
Rocklin and 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 juliej@jalone.com.  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 www.jalone.com or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento

Placer County News Headlines

Placer County Water Agency UpdatesAUBURN, Calif. - Recessing from their June 25, 2015 Board meeting, the Placer County Water Agency (PCWA) Board of Directors

Attempts to change Proposition 13 are misguidedThere's been no shortage of attempts in recent years in the State Legislature to overhaul Proposition 13-California's landmark initiative protecting homeowners and small business owners

50 Days of the Grateful Dead: Truckin' at Levi's StadiumTruckin' opens the Fare Thee Well Run in Santa Clara, CA at Levi's Stadium on June 27, 2015. Full setlist.

Gruesome Murders in Roseville Under InvestigationThe two men found shot and burning in Roseville Thursday night have died and the Placer County Sheriff's Office is asking for the public's help in solving this heinous crime.

Honda Accord Hybrid offers great performance, gas mileageIf you're considering purchasing a Honda Accord, the dilemma one could face is one of its primary competitors is conceivably the Accord Hybrid.

Roseville Gas Prices Push Below $2.90 GallonRoseville gas prices are trending downward, recently pushing below the $2.90 mark at a few locations throughout the city.

Roseville Utility Rate Hikes Begin July 1stThe Roseville City Council approved two consecutive annual rate increases for wastewater services that will kick in on July 1, 2015.

Dan Dugger to manage Rocklin Bass Pro Shops Outdoor WorldDan Dugger has been named store manager for the newBass Pro Shops Outdoor World store, which opens late summer in Rocklin, California.

Sierra College & Hacker Lab Open House in RocklinSierra College and Hacker Lab invite the community to an Open House on Tuesday, June 30 from 5:30-7:00 PM at 4804 Granite Dr., in Rocklin

Public Input Sought for Possible Auburn Area Community CenterStudying the feasibility of a potential community center that will serve people of all ages in the Auburn area is the focus of a Placer County effort that's now underway

Santucci Memorial Golf Tournament in Roseville this SeptemberThe 12th annual Bill Santucci Memorial Golf Tournament will take place Friday, Sept. 18 at Sierra View Country Club in Roseville.

Folsom, Sacramento Reach Settlement on Mather Airport ExpansionFolsom, CA - The City of Folsom and Sacramento County announced a settlement today over plans to expand Mather Airport.


NEWS: In Case You Missed It