Arizona Real Estate Notebook

Last week Fannie Mae started;

… requiring servicers to verify income, liabilities, and monthly expenses for all borrowers prior to granting a permanent standard Fannie Mae mortgage modification. Previously, servicers were allowed to evaluate borrowers for standard mortgage modifications using stated information from the borrower.

It’s hard to believe that previously all you had to do was tell Fannie Mae you qualified for a loan modification and they bought it! Obviously an organization run by politicians.

I can see this unwritten policy, “We need more loan mods or the politicians that created the program will look bad and we need those politicians to cover our corrupt butts with hundreds of billions of dollars so do whatever it takes to get people into the loan mod programs.”

Despite the “stated income” qualification requirements (and I thought “stated income” was dead) the loan mod programs have been colossal failures. It’s obvious that the politicians have given up on the loan mod programs and fraud prevention has now belatedly become a concern.