I’m sure you heard your parents embellish something about their childhood, like how many miles they had to walk to school. If you were like me, you rolled your eyes, nodded and smiled.
Well, soon we will tell our kids how we used to have to provide a months worth of paystubs as a requirement for loan approval and they will likely roll their eyes, nod and smile.
Fannie Mae this week announced that it will soon begin allowing lenders the ability to use employment and income information managed by the credit bureau, Equifax. That can be somewhat scary when you consider how well they manage the credit score system when there is a problem.
Rather than relying on the traditional documentation process of collecting physical copies of pay stubs and tax information, Equifax will begin providing that information to mortgage lenders.
This move is intended to make the mortgage process easier and faster for borrowers, as well as lenders. All I can say is we shall see.
Also coming in 2016, Fannie Mae announced that it will begin allowing lenders the ability to evaluate borrowers who have no credit score through a special automated process. I will keep you updated as we learn more.