from our amazing team leader, Ron Donovan:


Beginning June 1 folks, lenders originating mortgages being sold to Fannie Mae

Will have to pull a second credit report just before the loan closes!

The new quality control requirement is designed to prevent a type of mortgage fraud called "shotgunning," (which I've never heard of before) but the guidelines could send lenders on wild goose chases. Will Dillard, a vice president of operations at SettlementOne Credit Corp., a San Diego reseller of credit data, told American Banker that pulling a second credit report would help stop such frauds but that lenders might also waste time checking out false alarms. "If they see another inquiry, Fannie would like to see lenders query those creditors," Dillard said. "If you're at the funding table ready to fund and you see a new inquiry popping up, the question is, do you send your underwriter out...to track down Honda Motor if the borrower is also trying to buy a new car?"

Bottom line is your buyers need to know NOT to buy anything on credit, apply for credit, do ANYTHING with their credit until they close on their new home.