Collecting pay stubs during the underwriting of a mortgage is about to become a thing of the past, as Fannie Mae is now allowing lenders to use the database monitor by Equifax for income verification, according to the Wall Street Journal's Joe Light.
Other developments announced by Fannie, also aimed at broadening the mortgage market, include easing the lender process for granting loans to borrowers who don’t have a credit score, a key issue for certain minorities:
Fannie Mae officials on Monday said that in 2016 they would begin to allow lenders to evaluate borrowers without a score through the automated process. Borrowers that have a traditional score calculated by Fair Isaac will still need to meet the 620 minimum, on a scale of 300 to 850.
... In August, Fannie rolled out a new program that let lenders count income from nonborrowers within a household, such as extended family members, toward qualifying for a loan.
Head over to The Wall Street Journal for more: