Fannie Introduces “Innovative Solutions” Allowing Student-Debt-Laden Millennials To Buy A Home
by Tyler Durden
ZeroHedge.com
Apr 26, 2017
So what do you do when a massive student loan bubble results in crippling leverage for an entire generation of your population rendering them financially unqualified to obtain mortgage financing and their ‘God-given right’ to a slice of the ‘American Dream’? Well, you simply change the rules to allow mortgage lenders to ignore all that pesky student debt...anything less would simply be evil and potentially racist, sexist and all sorts of other -ist words.
Luckily, Fannie Mae is right on top of the issue and has just released new rules allowing millennial borrowers to, among other things, simply exclude student loans, credit cards and auto loans that are “paid by someone else”...wink wink…when applying for a new mortgage. As an added benefit, taxpayer subsidized mortgage loans can also now be used to repay student debt…Hooray for taxpayers!
Fannie Mae announced new policies that will help more borrowers with student debt qualify for a home loan. These innovations address challenges and obstacles to homeownership due to a significant increase in student loan debt over the past decade and provide access to credit for qualified borrowers. The new solutions give homeowners the opportunity to pay down student debt with a mortgage refinance, allow borrowers to exclude non-mortgage debt paid by others as part of the loan application process, and make it more likely for borrowers with student debt to qualify for a mortgage loan by allowing lenders to accept student debt payments included on credit reports.
The Rest…HERE
